This is what is found in the php manual under the String datatype http://php.net/manual/en/language.types.string.php
Given that PHP does not dictate a specific encoding for strings, one might wonder how string literals are encoded. For instance, is the string "á" equivalent to "\xE1" (ISO-8859-1), "\xC3\xA1" (UTF-8, C form), "\x61\xCC\x81" (UTF-8, D form) or any other possible representation? The answer is that string will be encoded in whatever fashion it is encoded in the script file. Thus, if the script is written in ISO-8859-1, the string will be encoded in ISO-8859-1 and so on. However, this does not apply if Zend Multibyte is enabled; in that case, the script may be written in an arbitrary encoding (which is explicity declared or is detected) and then converted to a certain internal encoding, which is then the encoding that will be used for the string literals. Note that there are some constraints on the encoding of the script (or on the internal encoding, should Zend Multibyte be enabled) – this almost always means that this encoding should be a compatible superset of ASCII, such as UTF-8 or ISO-8859-1. Note, however, that state-dependent encodings where the same byte values can be used in initial and non-initial shift states may be problematic.
Could you explain in simple terms as to what this means ?. Thanks