It tells you how well your packaging (cover, title, first frame) earns the click.
200 clicks from 4,000 impressions is a 5% click-through rate.
Judging CTR alone. A high CTR with low watch time can mean the packaging overpromised.
How to use it
Compare CTR against your own other videos, not against someone else’s numbers, and only across similar traffic: browse features, search and external links all behave differently. Read it together with watch time. The best sign is both rising together, which means the cover made a promise and the video kept it.