If you mean Dim as Rockn suggets it comes from the original BASIC language and was used not only to "declare" variables but also allocate Memory space for them. In those days memory was at a premium, so it was essential for the Basic Editor to have an idea of how much memory to set aside to prevent the program from running out of memory and crashing.
Today it's main use is to tell the VB Editor what Type of variable you are going to use, this has both memory, speed and programming affects.
If you don't declare them the editor will guess what they are and can get them wrong and cause you to get incorrect results (although current VB Editors are pretty good at guessing).
If it is not sure it will assign the variable as a "Variant" which it will then have to change while the program is running, which can be very inefficient.