Fan Speed is the speed at which the fans on the toolhead will spin throughout most of the print. This is a percentage of the maximum capabilities of the fans.
A greater speed allows better cooling. This reduces oozing and stringing and produce better overhangs and reduces the pillowing effect.
A lower speed will reduce warping with some materials and will make the print stronger.
The fan speed should almost always be maximum when printing materials with a low glass transition temperature range, such as PLA.