'What does "set to root of installation" mean?

I'm still new to these kinds of computer terminologies. Can you help clarify something for me.

If I'm installing a piece of software from github and it says "set the environment variable... to the root of the installation" Does that just mean that I should set the environment variable to the folder where I downloaded the software from?

ex: If I install something to /home/user/workspace Would I then just set the environment variable to " = /home/user/workspace "

Please and Thank you.

linuxinstallationenvironment-variablesroot


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