Why specify a url-loader limit?

Question

Node.js

In general, as I understand it: file-loader uploads files to a separate folder, and they are loaded on the site when they enter.
url-loader encodes files to be used as a url string (roughly speaking). Thus, only those files that are directly needed at the moment are loaded, so that fewer resources are wasted.
But that's why it is written everywhere that he needs to set a limit (mainly 10,000 bytes) in order to upload it as a file when it is exceeded. Also, the file will be loaded on login, right?

Answer 1

base64 content will be loaded with your scripts, and files as needed.
Essentially, a url-loader is needed to reduce the loading time of small files, but if there is too much content inlined in url(), your bundle will become too heavy.