For example, if this field is 3, Jenkins will only launch a new instance as long as total number of droplets associated with this Agent Template on DigitalOcean doesn't exceed this number. In this way, even in the worst case of Jenkins starting instances and forgetting about them, you have an upper bound in the number of instances tof this Agent Template hat are concurrently executed.
Set to 0 to remove the cap (why would you want that though?). Note that DigitalOcean appears to have its own instance cap at 5.