The health meter tells you that how much health of the character has left. When the character taken damage, the health meter will deplete. If the health meter depleted completely, they'll lose a life. Just like in a video game. Playable characters health meter will turn red when the health is low. If you wish to appear in this, you can do. Press the space bar to go to the next costume.
Credit to everyone! Most credit goes to their owners.