A workspace is helpful when you need to share a number of items with the same group of people. For example, you might create a workspace for each of your clients (each workspace could have branding appropriate for each client) or each department at your organization.
Similar to a folder, a workspace is an area on your Home tab in which sheets, reports, templates and subfolders can be organized. A workspace offers more functionality than a folder because you can set up sharing permissions and branding (a logo and a color scheme) at the workspace-level. As new items are added to the workspace they’ll automatically inherit the sharing permissions and branding applied to that workspace.