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Filters provide a flexible way to modify the data within each view.
Filters can be used to:
 - exclude data
 - include data
 - change data 
Filters help you transform data, so its better aligned with your business needs.
During Processing, google applies Filters to the raw data collected by your site. This transformed data is what you see in each view.

e.g. you can use a Filter to exclude data from your internal employees.
e.g. Filter to clean up your data, suppose you have a page appearing 3 times like
  PAGE1.html
  page1.html
  Page1.html
you can apply a lowercase filter so that there is only one row for the above 3.

Important Note:
Filter are applied in the order they appear in your configuration settings i.e. filter order matters.
Output from one filter becomes input for the next filter.

Once Filters are created, they can be applied to any view. Always apply Filters on Test View first to understand their impact.