Computers work in binary where every digit has one of two states (0 or 1) and is called a bit (binary digit). Whenever you add a bit to something you are basically doubling how many numbers it can represents:
1 bit = 2 numbers (0 and 1).
2 bits = 4 numbers (00, 01, 10, 11)
etc.
We ultimately settled on 8 bits being a fundamental unit of computing called a byte. So everything is done in units of bytes. 8-bits is 1 byte, 16-bits is 2 bytes, 32-bits is 4 bytes, etc.
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