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Margin: is the area outside the border
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Border: is the border surrounding the content and padding which could be of any width.
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Padding: is the transparent spacing between the border and the content
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Content: is the actual content may it be text image anything
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Box model is useful when setting some elements height width
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Let's say a para has a marginleft and right of 10px. If you set the width to 100px the actual width will be 120px
Example
Margin left and right: 20px, Padding left and right: 10px, border:5px
Width set to 500px
Total width = 500 + 20 + 20 + 10 + 10 + 5 + 5 = 570px