How it works
Crawl budget is the number of URLs a search engine is willing and able to crawl on your site in a given period. It depends on how fast your server responds and on how much Google thinks your pages are worth revisiting. Google describes it as the combination of crawl capacity, what your server can handle, and crawl demand, how much it wants your content.
It is a real constraint only on large sites, and it is invoked far more often than it applies. A site of a few hundred pages will not run out. Even so, the way crawlers spend their time on a small site still affects how quickly new and updated pages get picked up.
Where it bites is on sites that generate URLs: faceted navigation, search result pages, session parameters, endless pagination, and old URLs that keep returning errors. A crawler spends its allowance on those and never reaches the pages that matter. It is one of the arguments for keeping a generated URL set small and deliberate rather than publishing every combination a template can produce.