DR is calculated from the quantity and strength of the domains linking to a site, on a logarithmic scale — moving from 20 to 30 is far easier than from 70 to 80. Similar scores exist from other tools (Moz's Domain Authority, Semrush's Authority Score), each with its own formula, so numbers aren't directly comparable across tools.
It's useful for comparing link profiles, vetting prospects for backlinks, and benchmarking against competitors. But DR only measures links — it says nothing about content quality, relevance or actual rankings. A high-DR page can still rank poorly for a specific query.
Treat DR as one signal among many, not a goal in itself. Chasing DR by acquiring links that don't fit your topic wastes budget; relevant, dofollow links from real sites move both DR and rankings for the right reasons.