PCTFREE and PCTUSED are the block storage parameters.

1. PCTFREE- This parameter is used to specify how much space should be left in the
block for updates.
For eg. if The PctFree for a block is 30, then Oracle keeps on adding new rows to
the block until the block is 70 % full.
It leaves the 30 % for future updates. That is, in case, any row is updated and
requires some more space, it is taken out
from the 30 % remaining in the Block. U should specify the Value of this parameter
HIGH if future updates in the rows of
the table are going to need more space. In case ur table is less prone to updates,
then this value can be specified LOW.

2. PCTUSED : As I have mentioned above, Oracle stops INSERTING new Rows in a table
when the space usage reaches the PCTFREE
limit.
Now consider this ---- When should Oracle start inserting new rows in the Block ?
PctUSED parameter is taken into consideration for the answer of the above
question.
Suppose u have specified PCTUSED as 40 %. and PCTFREE as 20 %.

1. Oracle will keep on inserting new rows till the space is 80 % used. It will
reserve the remaining 20% for future updates.
2. To start adding new rows again to the block, Oracle will check the space in the
Block and the PCTUSED parameter.
3. When the space falls below 40 %, Oracle will start adding new rows to the
block.

Hope I have explained the concept fairly.