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Who may reach which of your systems. Access is granted explicitly: a person or group is granted a system, and reaches nothing else. This is also where a Router's advertisements are set, meaning the nodes, addresses, subnets and names reachable through it.
When two Routers advertise the same subnet, clients use whichever answers fastest.
A system with Router switched on is a way through to other addresses on its network rather than something reachable only in itself. What it advertises (nodes, addresses, subnets and names) is set here.
Switch Router off before revoking such a system. Revoking it while it is a Router would strand the addresses it advertises, and the console refuses that rather than letting it happen.