When you increase contrast, lighter tones get lighter and darker tones get darker. This can produce more definition between areas of differing values, which gives the image more depth. When you decrease contrast, the distinction between light and dark is decreased, to produce a lighter, flatter look.
The example on the left shows high contrast.
The example on the right shows low contrast.
Move the slider all the way to the right for the highest contrast; move it all the way to the left for the least contrast.