It allows you to upload your content that you can reference in a Visualforce page.
It includes:-
- .zip and .jar files
- images style sheets
- JavaScript
- and other various files.
To reference a stand-alone file, use $Resource.<resource_name> as a merge field, In this <resource_name> is the name you specified when you uploaded the resource.
For Example,
<apex:image url=”{!$Resource.TestImage3}” width=”100″ height=”160″/>