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It changes the dots per inch.



The benefit is you can fit way more stuff on the screen and force apps into tablet mode on a non tablet device.



E. G. Dpi is 640 and the dialer may display 5 contacts. You change the DPI to 540 and it may display 7-8 on the same screen. It is almost necessary with a phone this big unless you have bad eye site because the phone utilizes the screen real estate so badly in Stock dpis