MS-DOS was created to run on the 8088 CPU in the original IBM PC. The CPU only can address one mega byte. of memory. The upper area of memory was reserved for BIOS and memory mapped video. The design allowed a maximum of 640K of RAM for DOS.
Now those limits have little meaning. With the introduction of the Intel 386 chip much larger memory was available. And by the way, the introduction of the 386 was vital to the birth of the Linux system.