it refers to the diameter.
the number is the first digit like so:
T5 = 5/8th of 1"
T8 = 8/8 (or 1")
T10 = 10/8th of 1" (or 1.25")
T12 = 12/8 of 1" (or 1.5")
The smaller the number the more efficient the tube.
Also, T5 give out more watts per square inch so you need as many watts as you would if you used T8 lighting.
T5 penetrate the water deeper too