Also known as: path loss
Path loss is the attenuation a signal experiences travelling from transmitter to receiver.1 It is dominated by the spreading of energy over distance, plus losses from terrain, buildings, and foliage.
How it works
In free space, power falls with the square of distance, and loss rises with frequency; real environments add much more. Path loss can total 100+ dB over a few kilometres, which is why link budgets are done in decibels.
Relevance to SDR
Path loss explains why a distant or obstructed system arrives near the noise floor, and why antenna height and a clear path (propagation) matter so much.