Nitrogen is a vital element in plant development. It facilitates cellular development and is a major component of chlorophyll, which in turn facilitates photosynthesis, without which a plant wouldn't be able to process its food. It is also a component of amino acids, which are the building blocks of proteins in both plant and animal life on Earth. Healthy plants contain 3- to 4-percent nitrogen in their above-ground tissues.
Nitrogen is present everywhere on the planet, in the soil and in the atmosphere, but little of it is available to plants, which is why nitrogen fertilizer is produced commercially. Nitrogen is available to plants in its inorganic forms, as ammonium ions and nitrate ions. Commercial nitrogen is produced from ammonia. In the soil, microorganisms convert at least some of the nitrogen into a usable form for the plant, but nitrogen deficiency is still very common, and of course, poor soils have fewer microorganisms to do this work.
Nitrogen is an important and useful fertilizer for lawns, as most people with grass growing in their yard would prefer it to be lush and green, rather than sparse and brown. A nitrogen application will "green up" the lawn rather quickly, making it appear healthy.
Plants that receive nitrogen applications are generally greener and undergo a surge of new green growth. Their foliage is bright and sturdy. Sometimes this growth occurs too rapidly--usually when the fertilizer is overzealously applied--and the new growth is green and healthy-looking, but weak and prone to damage. This new growth will require more nitrogen down the road, as plants require and use more nitrogen the larger they grow.