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issue with tripleo

Hi, I am starting out with RDO tripleo . For deployment i am using baremetal machines. one for under cloud and 2 for overcloud. So in steps it states that for overcloud deployment one has to create flavour and update its propertyfor wheather it is compute or a controller or storage. So my question is if we are using baremetal why do we need to create flavour does it not use all the computational resources itself. or is it that we can create multiple overcloud on the same baremetal and it creates some sort of vm over those baremetal via libvirt for controller or compute or storage.

Really confused. Any help would be appriciated.