Floor and ceiling are classical computer and math functions that basically round numbers down or up.
select x, floor(x), ceil(x), trunc(x)
from (select unnest(ARRAY[-4.8, -4.2, 4.2, 4.8]) as x) as f;
x | floor | ceil | trunc
------+-------+------+-------
-4.8 | -5 | -4 | -4
-4.2 | -5 | -4 | -4
4.2 | 4 | 5 | 4
4.8 | 4 | 5 | 4
(4 rows)
In the context of building a grid, it can be used to define the extents of the grid to aesthetically-pleasing numbers. For example, if the x- extents of a layer go between Eastings 2754324.254 and 2770756.610, they can be "rounded" to the bounding 1 km grid with:
select floor(xmin/1000) * 1000 as xmin, ceil(xmax/1000) * 1000 as xmax
from (select 2754324.254 as xmin, 2770756.610 as xmax) as f;
xmin | xmax
---------+---------
2754000 | 2771000
(1 row)