[moftz]

I think of it in the four categories they typically teach in digital design classes for electrical engineers:

T - True F - False X - Don't care Z - High-Z, essentially "don't know" or a null input

You can apply "don't care" to inputs to a logic equation to reduce the complexity of it. If you know a certain input will never be true while other inputs are false, then you can ignore all the states where that is the case. For example, the ECU in a car will turn on a certain light on the dashboard whenever the wheels slip. The wheels can't slip when the car isn't in drive and certainly not when the car is off so the ECU can reduce the logic needed to determine when to turn on that light. Instead of (car is on AND car is in drive AND power going to wheels AND wheel is slipping THEN turn on light) you can just reduce it down to (power going to wheels AND wheel is slipping THEN turn on light). This could would also cause the light to go on if the car was off while power was going to the wheels and the wheels were slipping but we know that case is impossible (engine can't send power if it's not on).

The High-Z is more of a "don't know" kind of input or output. It is an undetermined input that is neither true or false. We still care about it since it's not a "don't care" but we have no idea what it is. You could build a circuit to react to this state or have the circuit do nothing until it becomes true or false. You can also use this as an output of a circuit.