The application generates semi-pronounceable passwords. It may not be quite as secure as fully random passwords, but hopefully a password can be remembered without having to write it down. It generates multiple passwords at a time, and you can choose the one that is most memorable to you.
Remember, just because a password is generated somewhat randomly, does not mean that it is a good password. If a generated password is a real word spelled correctly, it is not a strong password no matter how it was generated. Use some judgment, and feel free to make further changes to the password to make it even more memorable and more powerful.