If you have a website which allows users to upload their own images then you will need to change the default maximum files size upload.
The PHP default for all file uploads is 2MB, so the server will error if you try uploading a file more than 2MB. This can be a problem if you want users to upload pictures as most pictures now are going to be far more than 2MB.
The idea of putting the file size at a low limit is to help the server save bandwidth, which you will need if you are on a shared hosting account. But if you want to change this you will need access to the PHP.ini file.
PHP.ini
Go to your PHP.ini file and change the parameters upload_max_filesize and post_max_size.
file_uploads = On
upload_max_filesize = 10M //needs to be in {x}M format
post_max_size = 10M
As these changes are being done in the PHP.ini file you will need to restart apache for these changes to come into affect.
Remember that changing the file upload limit will be decided by your hosting company. If you have an upload limit on your account then make sure you don't upload too many images.