They are the service indicator lights. They go down based on a variety of factors and essentially equate to how much use the car is getting. When they go yellow and/or yellow/red, the "oil service" or "inspection" text will also be lit up.
For most people they are of little use. It takes about 9-11k miles for mine to indicate an oil service is needed, and I get my oil changed every 3500-4500 miles as a matter of course.
I do pay attention when they say inspection, which usually means Inspection I or Inspection II, but you can keep track of those intervals (15k or 30k for my E36, I believe) yourself.
If you buy a service reset tool, you can reset them yourself. One thing to avoid is resetting them every time you change the oil. Instead, you should only reset them when they need to be reset. I have been told an early reset will throw the system off of where it should be, but I dont' really know the reason behind it. I just listen to my mechanic. She resets them for free when needed.