What is this Simulator disk image in Disk Utility?

When I run Disk Utility (on Monterey), I see listed among my disks: Disk Images iOS 16.0 Simulator Why? What is a simulator disk image and why is it "open"?

What is this Simulator disk image in Disk Utility?

When I run Disk Utility (on Monterey), I see listed among my disks:

Disk Images

iOS 16.0 Simulator

Why? What is a simulator disk image and why is it "open"?