They are basically the hit points for a planet. Same function as your ship's hull. More population, more damage it can take before being invaded.
_________________Ranks 400+ Join us in exploring..

[20:40] Wredz: just hacked a massive extremely rich minting planet from someone.. thats the best planet i ever hacked
[20:43] DarthFlagitious: is it spearmint or peppermint?