Michael H. answered 10/22/19
U.S. Army Veteran Graphics Designer, Tutor.
Greetings!
A "bit" is a computer term for data storage. It can only contain two values, typically 0 or 1. 8-bit simply means the data chunk is 8 bits in total.
As for monitors and displays using graphic programs like Photoshop, an example of the differences between bit depth are gradients. Gradients in 8 bit depth are going to be choppier or less smooth than in a 16 or 32 bit depth display.
In your case:
Most computer displays are only 8 bit. Assuming yours is, your display will only display up to 8 bits even though you're working in 16 bits in Photoshop or other programs.
Extra Question:
how do monitors like Eizo that have 16 bit depth work if the operating Photoshop doesn't support it?
Adobe Photoshop CC 2019 currently supports up to 32 Bits per channel.