I think the below states it fairly well, found it when searching on Google.
Quote:
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A six figure grid references is a reference method used to pin point a location within a square. It is composed of the x-axis (also called the easting or the distance along the map) and the y-axis (northing or the distance up the map). When locating a place on a map using this method, you will have 6 numbers e.g. 216 322 (216 being the easting and 322 being the northing).
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I think the reference to pin-point a location is key, some of our real navigation experts at SUBSIM should be able to tell you more
Welcome to SUBSIM by the way
