table.user_id is foreign key, referenced to primary key of another table users.id. That means users related to table as one-to-many (1:N). And by deleting of some record from users all related records from table will be also deleted.
Also to answer your question about the string, it is simply creating a varchar in the database. I believe the default is around 250 in length, but you can also specify a length as a second parameter.
This differs from other types which all have their own methods $this->longtext(), $this->text() etc.
If you would like to change the default size, you can do so by going into the app service provider…
You may configure the default string length by calling the Schema::defaultStringLength method within the boot method of your App\Providers\AppServiceProvider class