Answer Description
Dynamic Host Configuration Protocol (DHCP) provides network devices with IP configurations. When a Windows based PC or Server does not have a statically assigned IP and cannot connect to a DHCP server it will assign an Automatic Private IP Address (APIPA) and attempt to use it to communicate on the network. The APIPA address range is 169.254.0.0 to 169.254.255.255.
Wikipedia
In computer science, the Dynamic Host Configuration Protocol (DHCP) is a network management protocol used on Internet Protocol (IP) networks, whereby a DHCP server dynamically assigns an IP address and other network configuration parameters to each device on the network, so they can communicate with other IP networks A DHCP server enables computers to request IP addresses and networking parameters automatically from the Internet service provider (ISP), reducing the need for a network administrator or a user to manually assign IP addresses to all network devices In the absence of a DHCP server, a computer or other device on the network needs to be manually assigned an IP address, or to assign itself an APIPA address, the latter of which will not enable it to communicate outside its local subnet
Dynamic Host Configuration Protocol - Wikipedia, the free encyclopedia