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A "nybble" (or nibble) is a four-bit unit of data, or half of a byte. Since it consists of four bits, it can represent 16 different values, which corresponds to a single hexadecimal digit. Nibbles are used in some applications like microcontrollers, and they form the basis of the Binary Coded Decimal (BCD) system, where one nibble represents a single decimal digit.

Unit of data: A nibble is a group of 4 bits, while a byte is 8 bits (two nibbles).

Representing values: It can represent 16 different values, from \(0000\) to \(1111\) in binary, or \(0\) to \(F\) in hexadecimal. 

Applications: They are useful in situations with limited resources or when manipulating individual bits is necessary, such as in microcontrollers or assembly languages. 

Example: A single decimal digit (0-9) can be represented by a single nibble in BCD, as shown by Lenovo.