That depends on the size of the finish hole. It should be big enough so that the larger bit will grab in the hole and not skate off.
Most metals are initially drilled with a narrower drill, forming a pilot hole. Then the right size drill is used to complete the drilling of the hole by widening the pilot hole.
I drill a pilot hole the size of the 'barrel' of the screw. -I always use a combination drill bit for sinking screwheads. The first part of the bit is the diameter of the 'barrel' of the screw and the step, one inch higher is the size of that screw's head. (The barrel is the diameter inside threads) -I have a set of these drill bits for #6, #8, and #10 screws and they are great.
It is not a drill bit, it is called a Tap. You drill a hole slightly smaller than the Tap and then screw it into the hole.
Drill bits are not universal. You choose the size of the drill bit according to the size of hole you like to make.
That is called drilling a 'pilot' hole. This helps the bigger drill bit to keep exactly square.
If you want it to grip, drill a 9/64 hole. For a clearance hole, drill 7/32.
Start by drilling a round "pilot" hole, then shape it with an end mill.
Depending on the material, I would work with a 3/8 or 11/32 bit for a pilot hole.( If the material is quite soft (aluminium for instance) then I go smaller with the pilot.)
That size is 8-32. The drill bit for a clearance hole is 11/64, or a #17 drill bit.
It's to drill a pilot hole for the screw and a recess for the head to go into.
A pilot hole can be to help direct a screw in situations where alignment is important. Most commonly it is used to ease the process of fastening the screw and reducing potential damage to threads in the process.
A sentence for the word pilot is " The pilot has to fly into Tokyo tonight." You may split the wood if you don't drill a pilot hole first. I can pilot your boat through these waters easily.