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Source: Using SQLite by Jay A. Kreibich (2010)
Example:
Perhaps most importantly, computer users have grown to expect that a document, project, or other “unit of application data” is stored as a single file. Having the whole database in a single file allows applications to use database instances as documents, data stores, or preference data, without contradicting customer expectations.
What exactly is it?
From the context, "preference data" could mean either:
Data about how the user prefers their application's user interface to look and feel. In the past, this data was stored in "configuration files" or "registry hives". Web sites often stored this data as "cookies".
Data about what customers prefer to buy, or what ads are most interesting to people who read web pages.
