You can think of an application as being a collection of properties, with properties being used for making authenticated requests against the Identity Cloud REST APIs. Applications provide a way to centrally manage all of your properties; for example, you can configure a collection of settings at the application level and, by default, have those values applied to each of your properties. In turn, you can then update any of those settings at the application level, and then have those settings automatically applied to all of your properties.
The Managing Applications section of the documentation includes the following topics:
For a quick video demo of the Manage Applications area of Console, use this link.