What does ‘nice’ mean on CPU utilization graphs?

It is the CPU scheduling priority, higher vales (+19) mean lower priority, and lower values (-20) mean higher priority (inverse relationship). man 2 getpriority will give you lots of details. You can set the nice value when launching a process with the nice command and then change it with the renice command. Only the superuser (root) can specify a priority increase of a process.

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