Notifications are one of the more visible but lower-risk permissions, since they only let an extension display messages on your screen. It appears in shopping trackers, productivity timers, messaging tools and monitoring extensions, and it is generally about convenience rather than data access.
What the notifications permission allows
With this permission, an extension can create desktop notifications with a title, message and icon, similar to notifications from a website or app. It does not by itself give access to your tabs, history, or page content; it only controls the ability to display alerts.
Which extensions legitimately need it
Price tracking tools, timers, task managers, messaging or email checkers, and monitoring extensions typically need this permission to alert you about events like a price drop, a finished task or a new message, since that alert is the extension's main value.
How to check or remove the notifications permission
Open chrome://extensions, click Details on the extension to review permissions. You can also manage notification behavior in Chrome's own notification settings under Privacy and security. To fully revoke it, remove the extension from Manage extensions.