Histograms show or graphically represent the distribution of values in intervals or bins of equal sizes. These charts are specifically used to represent the distribution of continuous data.
Histograms allow us to do statistical analysis of business related parameters like sales, profit, loss, quantity sold etc. Such quantities come under the category of continuous measures.
In order to create a histogram, Tableau takes the continuous measure values and places them into bins of equal sizes.
Bins are nothing but sets of value ranges like 0-5, 5-10, 10-15 and so on. The measure values corresponding to these ranges fall into their respective range.