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What tx_power exactly means?

Hi

I followed below tutorial with my nrf52840 using SDK 15.3.0

https://devzone.nordicsemi.com/nordic/short-range-guides/b/bluetooth-low-energy/posts/ble-advertising-a-beginners-tutorial

and I tried to change tx power, and I can see it is changed with my MCP.

but I don't know what exactly it means.

If I change tx power level with 3, then the actual transmit power level is not changed but, the advertising data can't be received by the other device which is far than 20m?

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