A reverb effect simulates reverberation caused by propagation of sound in an enclosed space. It can be used to add a feeling of space to sounds that have been synthesized or recorded without significant ambience (analog synthesizers, close miked drums, DI guitars etc.). It can also be used to enhance an existing ambience in a recording.
All good-quality reverb plug-ins will consume significant amount of CPU power.
Use reverb sparingly. Modern recordings tend to use small amount of short reverb. Too much reverb may make a recording sound muddy. In rare cases, a plain delay may actually sound better.
On the other hand, liberal use of long reverb is great for 80's style vocals or drums. Even then, more is not always better.
Reverb is usually applied as a global (aux) effect. Different tracks usually require different amount of reverb, or none at all. Some projects may need two reverb plug-ins on different busses - a short one for the short, percussive sounds and a longer one for pads and some lead instruments and vocals. Some tracks may even need both types at the same time, with different levels of each.