The histogram is visible in many of the image adjustment dialogs. It shows you the distribution of light and dark tones across the image. In most cases (There are exceptions) a well exposed image will have a histogram that shows tones ranging throughout the entire scale. In this example (Courtesy of Heavyj) you can see the before sample on the left looks slightly dull and dim, with a flat spot evident on the rightmost section of the histogram. In fact, such an image might be described by a commenter in a challenge as "flat". By pulling in the slider on the bright end to meet the spot where you can see values starting, you are telling the program where the brightest point in the image is. You can see the result on the right. If you were to apply this and then open the dialog again, the histogram would then stretch from side to side.
The same applies if the flat spot is on the dark end, except the uncorrected image would seem overly light and washed out.
Big difference! I feel so at home seeing this levels view (PSP X2). :) I usually deselect 'Preview' (it loads faster and you still get the preview in this dialog), and then I can maximize the window (levels dialog) to see it better yet.
Don't know why I felt compelled to mention this? Oh well...not going to delete it now. :-)
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