DPI, or dots per inch, is a measurement used to indicate the resolution of an image or the sensitivity of a computer mouse. In printing, a higher DPI means more detail and clarity in the printed image, while in digital displays, it refers to how many pixels are packed into a given area. In the context of mice, DPI measures how far the cursor moves on the screen in relation to the physical movement of the mouse. A higher DPI setting allows for faster cursor movement, which can be beneficial for tasks like gaming or graphic design, where precision is important.