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If a variable or parameter is of primitive type, then you can think of it as a label for a chunk of memory that holds a value.
Memory allocated for primitive-type variable | v *---------* | Value | *---------*
If, however, a variable or parameter is of reference type, then you can think of it as a label for a chunk of memory that holds the address of a chunk of memory that holds an instance. That is, a reference-type variable is a label for a chunk of memory that refers to another chunk of memory.
Memory allocated for reference-type variable
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*---------* *-----------*
| Address | --------> | Instance |
*---------* | |
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*-----------*
You need to understand a nuance of the primitive–reference distinction described in the following segments.