(Ignore Xeno Goku being that strong whoever made this is wrong Xeno is on the same tier as Archie Sonic)
I don't own the Art enjoy!
When ranking the strength of characters the natural thing to go by first is physics. However, since infinite force and energy is the highest degree of strength that a character can reach in terms of physics there would be no level of power above what is necessary to destroy an infinite universe, i.e. High 3-A.
Hence, in order to distinguish between the power of characters that are portrayed superior to that kind of power, we use a concept aside from physical strength: The concept of size.
The simple idea is that characters who can destroy much larger structures than others are likely also more powerful than them.
Dimensions are strongly related to the notion of size, as higher dimensional objects can be viewed as being infinitely larger than lower dimensional ones. Hence we use them as levels of power in our tiering system.
Note that while we use dimensions as the main measuring stick, we don’t ignore superior power of other nature. If a power has the necessary qualitative superiority over a certain level it can justify corresponding higher rankings in the tiering system. For more detailed information see Composite Hierarchies.
Composite Hierarchies
Composite Hierarchies are cosmological setting found in high end fiction, where the overarching setting is detailed in "layers, realms, planes, domains, etc.".
Within such a cosmology, the difference between these layers/planes is actually greater than the difference between physical dimensions, due to each layer containing several dimensions within them. Otherwise, these can be known as metaphysical layers.
In most cases, these meta-layers have a reality-fiction difference, meaning, the difference between each layer (not the dimensions of the layer) is like the difference between reality and fiction. Basically, to a higher layer entity, the lower entity is so insignificant that it can hardly be called real.
Not all composite hierarchies have a reality-fiction difference, and lack of a such difference does not disqualify a cosmology from being classified as composite.
Also, a composite hierarchy still fits into the Tiering System, whereas each individual cosmology should be reviewed on a case-by-case basis and tiered accordingly.
Intuitive Explanation
One easy way to envision the difference between dimensions is to envision it like the difference between a human and a (living) drawing of a human on an infinitely flat piece of paper. While we can move in 3 directions (upwards/downwards, left/right, forwards/backwards) the drawing can only move on the surface of the paper it is drawn on (only upwards/downwards and left/right). The infinitely flat piece of paper could be folded up to take up practically no volume and hence destroying it would mean destruction of a volume less than that of any 3-D object.
One can easily see the size difference if one looks at simple structures in different dimensions:
In 1-D everything is like a line. A line has only a length, but no width.
In2-D there are planes, like for example squares. A square has a length and a width. If we talk about size in 2 dimensions we refer to area. However the area of a line is 0, because its area would be given by width x length, but its width is 0 and due to that also the area independent on what its length is.
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Explaining how Dimensional Tiering works
Science Fictionexplaining Dimensional Tiering