Hi George,
You should really be trying to figure out this yourself by using BooksOnLine (BOL or SQL Server help) but I'll try to explain.
REVERSE will do exactly what it says, returns the reverse order of a string value.
I use it because I need to find the last space in the string. As CHARINDEX won't have a backwards function, I need to reverse the string to get the last space that will become the first one. Was I clear or did I confuse you even more? 😛