It's how many people on your instance subscribed to the community I think
this post was submitted on 15 Aug 2023
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Others explained already. I’ll add that you can see communities’ stats across all instances, including total subscribers, at https://lemmyverse.net/communities
I think how it works is It shows you number of subs from your instance, not total. Unless the community is hosted on your instance, in which case you see all subs.