Magnitude of eclipse is the fraction of the angular diameter of a celestial body being eclipsed. This applies to all celestial eclipses. The magnitude of a partial or annular solar eclipse is always between 0.0 and 1.0, while the magnitude of a total solar eclipse is always at least 1.0.
This measure should not be confused with the covered fraction of the apparent area (disk) of the eclipsed body, whereas the magnitude of an eclipse is strictly a ratio of diameters. Neither should it be confused with the astronomical magnitude scale of apparent brightness.
The apparent sizes of the Moon and Sun are both approximately 0.5°, or 30', but both vary because the distance between Earth and Moon varies. (The distance between Earth and Sun also varies, but the effect is slight in comparison.)
In an annular solar eclipse, the magnitude of the eclipse is the ratio between the apparent angular diameters of the Moon and that of the Sun during the maximum eclipse, yielding a ratio less than 1.0. As the magnitude of eclipse is less than one, the disk of the Moon cannot completely cover the Sun. When the centers of the two disks are sufficiently aligned, a ring of sunlight remains visible around the Moon. This is called an annular eclipse, from Latin annulus, meaning "ring".
For a total solar eclipse to happen, the ratio of the apparent diameters of the Moon and of the Sun must be 1.0 or more, and the three celestial bodies (Sun, Earth and Moon) must be aligned centrally enough. When that is the case, the Moon's disk covers the Sun's disk in the sky completely. The path of totality (i.e. of the travelling shadow of the Moon cutting off all direct sunlight from reaching the Earth's surface) is a relatively narrow strip, at most a few hundreds of kilometers across.