The result is that the motor is still turning, but the screwdriver bit isn't. It gives you control so you don't strip a screw or overdrive it once it's snug. It also helps protect the motor when a lot of resistance is met in driving a screw or tightening a bolt. With that many clutch settings, you can really fine-tune the power a drill delivers. Settings with the lowest numbers are for small screws, higher numbers are for larger screws.
Most clutches also have a drill setting, which allows the motor to drive the bit at full power.
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