As well as providing points costs for different models, the army list also divides the army into its constituent units. For example, the Orc army list includes Orc Boyz, Goblins, Orc Boar Boy and Snotlings... amongst others. For each of these units, the list defines the weapons the unit has and any optional upgrades it can include.
The list also places certain restrictions on the availability of some models. It would plainly be ridiculous for an army to consist entirely of fire-breathing Dragons, thundering cannons or Giants, to give just three examples. The army lists are designed to restrict the player's choice of units and characters so that the resulting force is reasonably balanced and will make for an enjoyable and fair game.