An inode is a record in a disk table that contains information about a file or folder, such as size, owner, device node, socket, etc., in addition to data content and filename. The number of inodes on your account is equal to the number of files and folders you have on it.
Every time a file is opened, the file's inode is read by the server kernel. The more files/folders you have, the more inodes you use. And the more inodes you use, the more system resources your account consumes. Therefore, it is a common and necessary practice among hosts to limit the number of inodes on a shared server, where it is not appropriate for one account to use system resources and leave no power for the other accounts.