Some mighty creatures tower over the battlefield, able to see and be seen over the heads of more diminutive warriors.
Source: Warhammer Fantasy: 8th Edition
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Large Targets are models that are especially tall, such as Dragons, Giants and Greater Daemons. Such foes cannot easily take cover behind obstacles that would shelter lesser troops. Large Targets cannot claim cover modifiers for obstacles (see the Battlefield Terrain chapter).
However, if your General or Battle Standard Bearer is a Large Target (or is mounted on one), then the range of their respective Inspiring Presence and Hold Your Ground! abilities is increased from 12" to 18" to represent the ease with which your troops can see them.