How can use distance Or Screen Coverage

I came across this parameter while reading MeshLODLevel
But I couldn’t understand how to use it and what exactly does it do?
Can someone help me who has used this parameter before
Is it applied to the mesh or its material is not fully explained?

It allows you to add different lod levels to your object. You first use your modelling app to create the different detail level versions of your object, then load and add them for each distance range.

Documentation explains in more details, check this page:

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