This template is a pseudo-magic word like {{NAMESPACE}}, which returns the name of whatever namespace it's on (hence it says 'template' right now). All this does is assign new names to those values to make them a little easier to use in template messages.

This table compares the magic word to this template showing what each would display if in those namespaces.

Location {{NAMESPACE}} {{NAMESPACE2}}
Main space (nothing) article
Incubator pages Incubator project
File pages (previously Image) File file
User pages User user
Categories Category category
Templates Template template
Modules Module module
Any talk page Talk, User talk, Incubator talk, File talk, ... talk
  • All other pages are rendered as "page".