I have googled this question but still don't quite understand the use of a Parameter. From my understanding, its used in functions when you want to refer back to it later. Here is an example of some code using a "parameter". This code is to create a lava block that kills the player when it gets touched.
local lava = script.Parent
local function kill(lavakill)
local lavaParent = lavakill.Parent
local humanoid = lavaParent:FindFirstChild("Humanoid")
if humanoid then
humanoid.Health = 0
end
end
lava.Touched:Connect(kill)