When using Insights, KPI reference lines allow you to add a visual target or benchmark to your charts, making it easier to compare your results against a specific value.
A reference line can be set using the 3 dots to the left of the chart/graph and choosing Set Reference Value:

This will open your KPI settings:

From here, you can enter your KPI value and your KPI label. The reference line label can contain up to 20 characters:

The reference line will then be displayed as a red dotted line across the chart, making it easy to distinguish from the data shown in the chart:

For example, if your KPI target is 80, you could set the reference line value to 80 and give it the label Target.
Your chart will then display a red dotted line at 80, with the Target label shown alongside it.
This makes it easier to understand the KPI at a glance without needing to refer back to the chart settings.