This is for a bowling bracket. See, when bowling in leagues or tournaments, a person can enter brackets. IT typically costs $5 per entry and you can enter as many as you want. If there are not enough feesable brackets to fill your request, you are refunded the number you couldn't fit into.
Basically, it is a 8 person bracket where game 1 is used for round 1. Game 2 is used for round 2. And game 3 is used for round 3. The winner of each round moves on, single elimination.
Byes are used when there aren't 8 people to fill a bracket. This is used to create as many brackets as possible. However, you don't necessarily want to have a bracket of mostly byes. You'd only want to have 1, and at most 2 byes per bracket. but, the idea is to spread out the byes to try and make it so there is only 1 per bracket if possible.
The visual breakdown of a bracket is like this: