The rhythmic grid is a unit of rhythmic duration whose value affects certain aspects of inputting and editing, such as the amount by which items move. However, it does not control the duration of notes and items that you input.
The current rhythmic grid resolution is shown by the note value in the status bar, and by ruler markings above the staff on which the caret is active or on which you are dragging notes. Longer lines in the rhythmic grid indicate beat divisions, while shorter lines indicate beat subdivisions.
The rhythmic grid controls the following:
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The possible input positions when using the caret or the mouse, and when copying and pasting. For example, setting the rhythmic grid resolution to 32nd notes allows you to input notes and items at a greater number of possible rhythmic positions than when the rhythmic grid is set to quarter notes.
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The amount by which the caret moves when using Right Arrow/Left Arrow.
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The amount by which notes and items are lengthened/shortened.
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The amount by which notes and items move.
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The duration by which notes are split.