Disk space is the amount of data allocated to a specific client. For instance, if a client is allocated 200MB, of disk space, then he or she could store up to 200 1MB pictures on that server.
When calculating disk space usage, it is usually the combination of all the files saved on the server, plus databases and email space.
If a client exceeds their disk space limit, the server will not allow them to upload any additional files or receive any mail.