Much like audio files, Unity will import texture files with a default list of settings that tend to keep things simple and work okay in the general case, but there are many import settings available, allowing us to improve a texture's quality and performance with some custom tweaking. Of course, making changes is just as likely to reduce quality and performance if we blindly make changes without fully understanding the internal processes going on.
The first option is the file's Texture Type. This setting will determine what other options are available, particularly under the Advanced dropdown. Not all importing options are available to all types, so it is best to configure this option for the texture's intended ...