its a measure of the difference between the volume of the cylinder at BDC (bottom dead centre - the piston is at its 'lowest' point) and the volume in the cylinder at TDC (top dead centre - the piston is at his 'highest' point).
this is useful because it gives an indication of how much work is exerted on the air, it is compressed more, has a higher density and so has a higher potential energy.
as a result you get higher efficiency from the engine.
A downside is that with a higher compression ratio there is a higher liklihood is pre-ignition of the fuel (which lowers mechanical efficiency as is 'bangs' before its suppose to).
So with a high compression ratio you want a higher grade of fuel (higher RON number)
I could nag on forever about this lol
hope that gives you an idea
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