Tracks allow you to organize your clips by layer. For visual elements at the same point on the timeline, vertical arrangement of tracks determines how they display in relation to other tracks. The further down the stack they are on the timeline, the further back they display in the video. Thus, if a track is below another track, its elements will be obscured by the track or tracks on top. Visual elements in the top track always display frontmost and can’t be obscured; those in the bottom track always displays farthest back and will be obscured by the elements in all other tracks above (in front) of it.
For example, a text box placed on a track above a video overlays the text on top of the video. If the text box were placed on the track below the screen recording, it would be behind the recording and not visible.