It’s an estimate of where water could exist in a liquid state on a planet’s surface.
That’s all it’s about. It’s not actually considering any factors for habitability other than “could water exist there”. It’s not even “does water exist there”, just whether it could.
How you calculate that can vary a lot, because things like the planet’s atmosphere and size and composition can change its surface temperature a lot. This is why estimates vary quite a bit, there are many different ways you could account for these other factors.
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