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It determines how many characters can be stored in a field. If you know what the maximum you can have in a field will be, you can set a size for it. If your field was storing either "Male" or "Female", then as the word Female has 6 letters, that field size could be set to 6, as nothing wider than that will ever be put into it. Even if you don't know an exact maximum, you can make an estimation and put a size in that should be big enough to store what you are likely to need to input. It also means you don't have wasted space by allocating more space than you need. If it turns out that it is not wide enough, you can widen it later.

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Q: What does the field size value determine when formatting a table's field properties?
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