Drill bit angle comes from the time when DIYers relied on manual drilling, and the drill bits had conical shapes. It is the angle between the cutting lip and the spur on its point.
Usually, there are two main drill bit point angles: 118° and 135°. The key difference between the two point angles is the shape. A 118° bit is more pointed and steeper and comes with a smaller chisel.
Moreover, the 118° bit drills more aggressively and is primarily used for drilling holes into soft materials such as wood and plastic. Although you can also use it to drill steel materials, the steeper cutting angle will cause it to dull rapidly.
On the other hand, a 135° bit is usually used for drilling holes into harder materials such as stainless steel, as the pitch makes it much easier to drill repeated holes into these materials. Since a 135-degree bit is flatter than a 118-degree, more of its cutting lips usually engage with the workpiece surface sooner to start the full metal drilling process.
For most types of drill bits, the angle of the point is vital in determining the type of material the bit can drill.