What is “Template” for in the following picture?
A template repository is any repository flagged as such. They can be used to start a new project based on another, though there are some other helpful features of template repositories.
https://docs.gitea.io/en-us/template-repositories/
For example, you could make a minimal viable project as groundwork so you don’t need to go through the trouble of standing it all up from scratch every time.