When working in MicroStation, you are working within a defined and finite "universe". This "universe", known as the MicroStation drawing plane (drawing cube in 3D) has a fixed size based upon the way that MicroStation stores the coordinates of lines, points, and other elements in the design.
MicroStation stores each coordinate point as a number, and that number is stored in the .dgn file. That number, however, can only be so big. In fact the number has an upper limit of 2 multiplied by itself 32 times, which is a little over 4 billion. This is a pretty big number, so we would think that the overall size of the design plane would be quite large, but this is not necessarily the case.
When working in CAD, we cannot just say I need something to be 2 feet long and that's it. We, and the computer, need to go a little bit deeper than that and calculate a value for how precise the system is. This is controlled by setting a smallest unit of accuracy that the computer will understand, and equating that to a unit of normal measure in the real world such as feet or meters. When we do this, we are beginning to set up what our units are going to be in the model or drawing, and how the computer determines the lengths of lines or other objects according to this.
The smallest unit of accuracy in the CAD "universe" is known in MicroStation as a Positional Unit. This unit is static in terms of its use in the drawing database, and from this static unit, we work upward in scope to determine the relationship of higher level unit structures to this base positional unit size. The Working Units settings in MicroStation are used to control these relationships, and they proceed as follows:
Let's take another example. If there are 64 positional units per sub unit, and 12 sub units per master unit, we can name the master unit feet and the sub unit inches. We now have an english unit system accurate down to 1/64 of an inch. An object which is 1 foot long, would therefore be
The CAD system only understand the last one, positional units, but we understand the first two. The Working Units settings gives us the ability to make the CAD system work in measurement systems that are known to us, rather than the purely numerical structure that it understands and stores its database in.