Understanding stretch fabrics

They stretch in different ways by different amounts. Some fabrics have a two way stretch and will stretch between the selvedges. Some have a 4 way stretch and will stretch lengthwise as well as between the selvedges. Use a swimsuit as a way to remember - it’s a 4 way stretch as it must stretch the length of your body as well as the width of your body.
The percentage of stretch refers to how much the fabric physically stretches, NOT the percentage of stretchy fibre (spandex or elastase) that is in them. Sewing patterns will typically as for a minimum percentage of stretch the fabric must have.
Why is percentage stretch important?
Sewing patterns designed for this type of fabric are typically designed with negative ease. This means that the garment you make will be smaller than your actual body measurement so that it stretches and fits around you. That’s why it's really important to use the right amount of stretch, otherwise you won’t be able to get the garment on/off or move in it!
If you’re using a pattern which is designed for jersey fabrics then it will probably tell you the stretch percentage that the fabric you use needs to have. This is different from the stretch content, which is how much elastane or lycra is in the fabric.