“Alternative text, also known as alt text, is descriptive text that conveys the meaning of an image in digital content. It is designed to make visual content accessible to people with vision disabilities.” - Section 508.gov Authoring Meaningful Alternative Text
Whereas a caption typically describes what an image is, alt text describes what an image shows. If an image is purely decorative and serves no other purpose, alt text is usually unnecessary. Though there is technically no limit to how long alt text can be, it is best when it is brief (usually no more than 250 characters, including spaces, though the character limit for some screen readers will be lower than that). [Chicago Manual of Style vol. 18, 3.28]
Tasks where this would be useful in day-to-day workflows may include:

Alt text: none
What is wrong with this?

Alt text: "book club flier"
What is wrong with this?
Note: Alt text should be brief and that isn't always possible with complex images such as charts or infographics. In those cases, you may need to separate the image into small images and provide alt text for each, or include a long description for the image.

Alt text: "Book Club, join us 5/17 at 7pm in the Hickory Meeting Room to sign up. All ages welcome."
Why is this better?
Here are some general resources that will help you learn more about alt text.
Here are platform specific resources that will help you learn how to use lists within a particular program or software.
The following are criteria from the Web Content Accessibility Guidelines (WCAG) that relate to this skill. Please note that only level A and level AA criteria are listed.