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I am new to SQL Server, and would like to know what "literal values" means. It was in the context of this sentence:

Notice that all you’ve done is declare three variables for the literal values, and assigned them values before executing the query.

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Ok. A literal, not a lateral value... Gotcha.
A literal value in really any programming language is basically just a value that is defined within the code and does not change programatically.
In SQL I might use that by simply defining a varchar variable with a set value.
For example, at the start of a command,

DECLARE @myvariable varchar(30) as 'this value'

Then later in the query I might use it in a WHERE clause for example.

SELECT * FROM [table]
WHERE column1 = @myvariable.  

This is especially useful where you need to use that variable in multiple places in your script. This example uses setting a variable to a literal value. A literal can also be used in the WHERE clause directly.

WHERE column1 = 'this value'

Really, a literal value is just a value that is set in code and not directly updated through programming or by an input parameter. Also, while I used a varchar as an example, this can be any data type.

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    I like to think of literal values as "not variables", or in other words, "hard-coded values". – Randolph West Oct 29 '16 at 6:52
  • I don't believe I ever said a literal value is a variable. I just used the example of setting a variable to a literal value. A literal and a variable are two different things but can be used together. – Shooter McGavin Oct 30 '16 at 16:54
  • I'm not arguing the fact! Just adding a comment of how I think of them. – Randolph West Oct 31 '16 at 3:34
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Literals is a general programming term.

Using the C# definition here

A literal is a source code representation of a value

The BOL entry discussing them in TSQL is Constants.

Some examples of literals are below.

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SQL Server infers the datatype of literals from their contents. Some examples are

+-----------------------------------------------+------------------+
|                   literal                     |     datatype     |
+-----------------------------------------------+------------------+
| 1                                             | int              |
| $1                                            | money            |
| 1e0                                           | float            |
| 1.0000                                        | numeric(5,4)     |
| 2147483648                                    | numeric(10,0)    |
| {ts '2011-09-15 01:23:56.123'}                | datetime         |
| {guid '00000000-0000-0000-0000-000000000000'} | uniqueidentifier |
| 'Foo'                                         | varchar(3)       |
| N'Foo'                                        | nvarchar(3)      |
+-----------------------------------------------+------------------+

For values in queries that are variable (rather than constant) parameterisation is preferred to creating a new query containing the literal values. Both for security reasons (SQL injection) and to avoid compiling and caching single use plans.

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