What does "Device firmware update" do?

Hello AskUbuntu community,

I recently installed Ubuntu 20.04. In the Ubuntu Software app there is a notification on Device Firmware update. Could anyone explain what this is about in layman's terms? Also, if I got it right, from the Ubuntu Software one updates the Apps, while from the Software Update one can update the rest. However, it appears there is no app named Device Firmware, so I don't get why this update pops up within Ubuntu Software.

The Ubuntu Wiki will give you this

What is Firmware?

Many devices have two essential software pieces that make them function in your operating system. The first is a working driver, which is the software that lets your system talk to the hardware. The second is firmware, which is usually a small piece of code that is uploaded directly to the device for it to function correctly. You can think of the firmware as a way of programming the hardware inside the device. In fact, in almost all cases firmware is treated like hardware in that it's a black box; there's no accompanying source code that is freely distributed with it.

Where Do You Get Firmware?

The firmware is usually maintained by the company that develops the hardware device. In Windows land, firmware is usually a part of the driver you install. It's often not seen by the user. In Linux, firmware may be distributed from a number of sources. Some firmware comes from the Linux kernel sources. Others that have redistribution licenses come from upstream. Some firmware unfortunately do not have licenses allowing free redistribution.

In Ubuntu, firmware comes from one of the following sources:

• The linux-image package (which contains the Linux kernel and licensed firmware)
• The linux-firmware package (which contains other licensed firmware)
• The linux-firmware-nonfree package in multiverse (which contains firmware that are missing redistribution licenses)
• A separate driver package
• Elsewhere (driver CD, email attachment, website)

Note that the linux-firmware-nonfree package is not installed by default.

The firmware files are placed into /lib/firmware. If you look inside there on your Ubuntu installation you will see hundreds of firmware files that have been installed by these packages.

it continues, but I'd recommend reading the source - https://wiki.ubuntu.com/Kernel/Firmware