It determines Ia, defined in BS 7671 as, "current causing automatic operation of protective device within the time stated"
For type B this is 5 x In
For type C this is 10 x In
For type D this is 20 x In
Where In is the nominal rating of the breaker.
You can think of it as the instantaneous (<0.1 sec) trip current. So, for example, a 6A type B would require a current of 5 x 6 = 30A to guarantee an fast trip, a 32A type C would need 32 x 10 = 320A and a 20A type D would require 20 x 20 = 400A.
Much higher start-up, or 'inrush' currents are a feature of things such as motors, discharge lighting, welders, etc so you select a breaker nominal rating to handle the continuous load and type to deal with the short-term inrush current.
(There is no Type A, which would cause confusion with the use of A for amperes.)