The formula $$v = \frac{1}{3}bh$$ represents the volume of a pyramid or a cone, where 'v' is the volume, 'b' is the area of the base, and 'h' is the height. This relationship shows how the volume of these shapes is calculated by taking one-third of the product of the base area and the height. Understanding this formula is crucial as it helps in comparing volumes between different geometric shapes, especially prisms and pyramids, highlighting the differences in their structures.