Let's say you had to include in your database a list of the vehicles, Honda, Mercedes, Citron, Ford, range rover, Lotus, land rover,
Every time you stored one of these text entries in your database you would be increasing the size of your database. The idea of a look up is to store these text values in a separate table, along with a unique ID against each vehicle, then all you need do is store this ID in your main table.
You can access this ID with a correctly set up combo box attached to the field that you wish to record the vehicle.
The other advantage is that you now have a short list of vehicles which is easy to maintain, and add to. Avoiding duplication, allows correct spelling to be maintained throughout the database.