When you walk into a room or interior space, you'll feel more comfortable if your eye can rest on a main feature. That main feature is called the "focal point" of the room.
If your room has a beautiful picture window looking out to a lovely garden, that's it. If you have a fireplace, large or small, that will be the focal point in that room.
Sometimes a room has no distinguishing feature built in and you have to create one. Some ideas of focal points that you can add to a room are; large cabinet, oriental or patterned rug, dramatic mirror, fabric panel.