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As a PMProject Manager, you may want to measure the resource capacity at any point for making better in order to make informed resourcing decisions for new projects. This view helps the PM you to understand the estimated capacity of his resources in the selected period.

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Lets look at an example: Peter's estimated utilization is as follows:

SeptOct
17%-

So, Capacity of Peter's capacity for September is [1-(17/100)*100)=83%.
When the Utilization (Est) for the resource is 0, then the capacity for that resource is 100% as he is free for that period. For the remaining months, he is at full capacity, since he has no allocations.