The FLOAT data type in SQL is a fundamental data type used to store floating-point numbers, which are numbers with decimal points. It's a crucial part of any SQL database system, allowing you to represent a wide range of numerical values, from very small fractions to very large numbers. Crucially, FLOAT data types come in different precision levels, which directly impact the number of significant digits that can be stored. This flexibility is important for applications requiring varying degrees of precision. For example, storing measurements in scientific applications might require higher precision than storing customer order amounts. Different database systems might use different internal representations for FLOAT, so it's important to consult the documentation for your specific database system for details on precision and range.