Through this, you may control what this group of users is allowed to do on your forum.
For example, perhaps you want only administrators to be able to post in a specific category? Or only certain users to be able to attach files with their posts? Or maybe even allow a group of users to have their own user titles? These are all possible with user group permissions.
A user can belong to multiple user groups. The permissions from a user's additional user groups merge together in determining their final permissions, such that one Yes permission overrides all other No permissions. For example, if a user is a member of 3 user groups and the Post Topics permission looks like this among all of the groups:
Group 1 - No
Group 2 - No
Group 3 - Yes
...then the overall Post Topics permission for that user will be Yes, because one Yes overrides any number of No's.