Modules provide a container for your app's source code, resource
  files, and app level settings, such as the module-level build file and
  Android manifest file. Each module can be independently built, tested,
  and debugged.
Android Studio uses modules to make it easy to add new devices to your
  project. By following a few simple steps in Android Studio, you can
  create a module to contain code that's specific to a device type, such
  as Wear OS or Android TV. Android Studio automatically creates module
  directories, such as source and resource directories, and a default
  build.gradle file appropriate for the device type. Also, Android
  Studio creates device modules with recommended build configurations,
  such as using the Leanback library for Android TV modules.
Ex:
- Phone & Tablet Module
- Android Wear Module
- Android TV Module
- Glass Module
Besides these, you can also have a "local library module". Say, you develop a Account Management Framework as a library module to be used ultimately in your App, you can do it as a separate module in the same project. To include that in your App, you would have to write something like,
compile project(':mylibrary')
Docs say,
This declares a dependency on an Android library module named
  "mylibrary" (this name must match the library name defined as an
  include in your settings.gradle file). It requires the build system to
  compile the library module with your app module and include the
  resulting AAR file in your APK.
Lastly, Intellij mentions some more details about Module configuration files:
Configuration information for a module is stored in a .iml module
  file. By default, such a file is located in the module's content root
  folder.
Development teams, normally, share the .iml module files through
  version control.
This .iml file is a bit scary to look at. Here is an example from my project:
<?xml version="1.0" encoding="UTF-8"?>
<module external.linked.project.id=":app" external.linked.project.path="$MODULE_DIR$" external.root.project.path="$MODULE_DIR$/.." external.system.id="GRADLE" external.system.module.group="LearnCity" external.system.module.version="unspecified" type="JAVA_MODULE" version="4">
  <component name="FacetManager">
    <facet type="android-gradle" name="Android-Gradle">
      <configuration>
        <option name="GRADLE_PROJECT_PATH" value=":app" />
      </configuration>
    </facet>
    <facet type="android" name="Android">
      <configuration>
        <option name="SELECTED_BUILD_VARIANT" value="debug" />
        <option name="ASSEMBLE_TASK_NAME" value="assembleDebug" />
        <option name="COMPILE_JAVA_TASK_NAME" value="compileDebugSources" />
        <afterSyncTasks>
          <task>generateDebugSources</task>
        </afterSyncTasks>
        <option name="ALLOW_USER_CONFIGURATION" value="false" />
        <option name="MANIFEST_FILE_RELATIVE_PATH" value="/src/main/AndroidManifest.xml" />
        <option name="RES_FOLDER_RELATIVE_PATH" value="/src/main/res/layouts/common/layout/ver3/layout" />
        <option name="RES_FOLDERS_RELATIVE_PATH" value="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver3/layout;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver3;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver2/layout;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver2;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver1/layout;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver1;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver0/layout;file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver0;file://$MODULE_DIR$/src/main/res/layouts/common/layout;file://$MODULE_DIR$/src/main/res/layouts/learner/layout;file://$MODULE_DIR$/src/main/res/layouts/tutor/layout;file://$MODULE_DIR$/src/main/res/layouts/obsolete/layout;file://$MODULE_DIR$/src/main/res/layouts/common;file://$MODULE_DIR$/src/main/res/layouts/learner;file://$MODULE_DIR$/src/main/res/layouts/tutor;file://$MODULE_DIR$/src/main/res/layouts/obsolete;file://$MODULE_DIR$/src/main/res/layouts;file://$MODULE_DIR$/src/main/res;file://$MODULE_DIR$/src/debug/res" />
        <option name="ASSETS_FOLDER_RELATIVE_PATH" value="/src/main/assets" />
      </configuration>
    </facet>
  </component>
  <component name="NewModuleRootManager" LANGUAGE_LEVEL="JDK_1_7" inherit-compiler-output="false">
    <output url="file://$MODULE_DIR$/build/intermediates/classes/debug" />
    <output-test url="file://$MODULE_DIR$/build/intermediates/classes/test/debug" />
    <exclude-output />
    <content url="file://$MODULE_DIR$">
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/r/debug" isTestSource="false" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/aidl/debug" isTestSource="false" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/buildConfig/debug" isTestSource="false" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/rs/debug" isTestSource="false" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/apt/debug" isTestSource="false" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/res/google-services/debug" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/res/rs/debug" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/res/resValues/debug" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/r/androidTest/debug" isTestSource="true" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/aidl/androidTest/debug" isTestSource="true" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/buildConfig/androidTest/debug" isTestSource="true" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/rs/androidTest/debug" isTestSource="true" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/source/apt/androidTest/debug" isTestSource="true" generated="true" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/res/rs/androidTest/debug" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/build/generated/res/resValues/androidTest/debug" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/res" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/resources" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/assets" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/aidl" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/java" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/rs" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/debug/shaders" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/res" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/resources" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/assets" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/aidl" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/java" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/rs" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/testDebug/shaders" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver3/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver3" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver2/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver2" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver1/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver1" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver0/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout/ver0" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/learner/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/tutor/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/obsolete/layout" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/common" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/learner" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/tutor" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts/obsolete" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res/layouts" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/res" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/resources" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/assets" type="java-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/aidl" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/java" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/rs" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/main/shaders" isTestSource="false" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/res" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/resources" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/assets" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/aidl" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/java" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/rs" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/androidTest/shaders" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/res" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/resources" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/assets" type="java-test-resource" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/aidl" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/java" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/rs" isTestSource="true" />
      <sourceFolder url="file://$MODULE_DIR$/src/test/shaders" isTestSource="true" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/assets" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/blame" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/builds" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/classes" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/incremental" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/incremental-classes" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/incremental-runtime-classes" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/incremental-safeguard" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/incremental-verifier" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/instant-run-resources" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/instant-run-support" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/jniLibs" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/manifests" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/multi-dex" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/pre-dexed" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/reload-dex" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/res" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/restart-dex" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/rs" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/shaders" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/split-apk" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/symbols" />
      <excludeFolder url="file://$MODULE_DIR$/build/intermediates/transforms" />
      <excludeFolder url="file://$MODULE_DIR$/build/outputs" />
      <excludeFolder url="file://$MODULE_DIR$/build/tmp" />
    </content>
    <orderEntry type="jdk" jdkName="Android API 25 Platform" jdkType="Android SDK" />
    <orderEntry type="sourceFolder" forTests="false" />
    <orderEntry type="library" exported="" name="google-http-client-android-1.22.0" level="project" />
    <orderEntry type="library" exported="" name="firebase-analytics-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="firebase-core-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="play-services-auth-base-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="gson-2.8.0" level="project" />
    <orderEntry type="library" exported="" name="play-services-tasks-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="constraint-layout-1.0.2" level="project" />
    <orderEntry type="library" exported="" name="appengine-api-1.0-sdk-1.9.50" level="project" />
    <orderEntry type="library" exported="" name="design-25.3.0" level="project" />
    <orderEntry type="library" exported="" name="android-job-1.1.8" level="project" />
    <orderEntry type="library" exported="" name="transition-25.3.0" level="project" />
    <orderEntry type="library" exported="" name="play-services-base-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="multispinner-0.1.1" level="project" />
    <orderEntry type="library" exported="" name="play-services-auth-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="support-core-ui-25.3.0" level="project" />
    <orderEntry type="library" exported="" name="simpleratingbar-0.1.5" level="project" />
    <orderEntry type="library" exported="" name="play-services-maps-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="play-services-location-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="firebase-iid-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="support-core-utils-25.3.0" level="project" />
    <orderEntry type="library" exported="" name="jsr305-2.0.1" level="project" />
    <orderEntry type="library" exported="" name="support-fragment-25.3.0" level="project" />
    <orderEntry type="library" exported="" scope="TEST" name="multidex-instrumentation-1.0.1" level="project" />
    <orderEntry type="library" exported="" name="constraint-layout-solver-1.0.2" level="project" />
    <orderEntry type="library" exported="" name="androidannotations-api-3.2" level="project" />
    <orderEntry type="library" exported="" name="java-uuid-generator-3.1.4" level="project" />
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    <orderEntry type="library" exported="" name="firebase-messaging-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="firebase-analytics-impl-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="firebase-common-10.2.0" level="project" />
    <orderEntry type="library" exported="" name="eventbus-3.0.0" level="project" />
    <orderEntry type="library" exported="" name="cat-1.0.5" level="project" />
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    <orderEntry type="library" exported="" name="multidex-1.0.1" level="project" />
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    <orderEntry type="library" exported="" name="recyclerview-v7-25.3.0" level="project" />
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    <orderEntry type="library" exported="" name="support-vector-drawable-25.3.0" level="project" />
    <orderEntry type="module" module-name="backend" exported="" />
    <orderEntry type="library" exported="" name="android-android-25" level="project" />
  </component>
</module>