Note: You are currently viewing documentation for Moodle 3.3. Up-to-date documentation for the latest stable version of Moodle is probably available here: UTF-8.
UTF-8 (8-bit UCS/Unicode Transformation Format) is a variable-length character coding system. It is able to represent any character in the Unicode standard, yet is backwards compatible with ASCII. It is used by Moodle and MoodleDocs.
One benefit of UTF-8 is its ability to deal with languages that have 100s and 1000s of characters.