Earlier quoted context omitted.
That's the 24-bit part, which provides more play room then 16-bit. Normally 16 is plenty, by consider an example track which is heavily compressed so only the top 1% of range is used: 16-bits = 2^16 * 0.01 = 655 discrete levels 24-bits = 2^24 * 0.01 = 168000 discrete levels
I think you have the wrong end of the stick there. Even if a track is heavily multiband compressed, it's still using the full range of levels, as audio will oscillate between -ve and +ve for each cycle, potentially using most of the 65,536 levels available at 16-bit (and the 16777216 levels at 24 bit). The 0.01 is not relevant.
To help you understand, imagine 1-bit audio. What would it sound like? For each frequency, you can only have a single volume, i.e. it's maximally compressed.