What is the overdraft limit?

Excuse me, could you please clarify for me what the term "overdraft limit" actually refers to in the context of banking and financial transactions? I'm curious to understand the specific details behind this term and how it may impact an individual's account balance and financial standing. Is it a predetermined amount that a bank allows a customer to withdraw beyond their available balance, with potential fees or penalties attached? Or does it have a different meaning altogether? I'd appreciate your insights on this matter.