In order to create and manage applications and their specific data/metadata (e.g.: Layout, Component, Objects, reports, list views, Applications, etc.), we require a workspace.
Instance once created will have a default workspace created. An instance may have multiple workspaces.
While the creation of the workspace, will have the following fields:
Label
Name
Is Active
Is Public
Start URL
A workspace has members. A single user can have different levels of access under different workspaces under the same instance.