To put up simply, allowance is the maximum funds(tokens) that are able to be spent, if something bad happens, the attackers could have all the funds within your wallet. In case you set an allowance, let's say, 10 DODO, the attackers can only steal 10 DODO. You can also revoke the allowance, which in this case, that means the funds can't be moved without your authorization.
The term token approval or token allowance is interchangeable. You can learn more about it on
https://metamask.zendesk.com/hc/en-us/articles/6174898326683.
Thank 🙇 you Sir Owlcatz and Sir vv181, your explanation and links are very helpful, I stumbled on this while doing some research so I needed to make sure I am doing the right thing with my wallet, you've been very helpful, God bless you.