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It is used, along with significant digits, to indicate the precision of a measurement. Thus, in the two-significant-digit measurement 5.4 0.2 meters, the uncertainty interval is 0.2 meters. This means that the true value of the measurement is believed to lie between 5.2 meters and 5.6 meters.
You can do this with error bars. There are two common ways you can statistically describe uncertainty in your measurements. One is with the standard deviation of a single measurement (often just called the standard deviation) and the other is with the standard deviation of the mean, often called the standard error. Since what we are representing the means in our graph, the standard error is the appropriate measurement to use to calculate the error bars. While we were able to use a function to directly calculate the mean, the standard error calculation is a little more round about.