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CGI is the abbreviation for Common Gateway Interface. This common gateway interface makes it possible for scripts to communicate with the server. The cgi-bin is a folder automatically created for you where you can place those scripts. A good example of this is the FormMail script which you can use to create a contact form for your site.
If you are not storing any scripts in your cg-bin, it shouldn't be a problem if you delete the folder, but it also doesn't hurt to just leave it in your account. Unless there are scripts stored in the folder, it isn't taking up any significant space. If you do delete the folder but find later on that you need the the cgi-bin for a script, simply recreate the folder and save your script in the cgi-bin.
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