The first 128 characters of ISO-8859-1 is the original ASCII character-set (the numbers from 0-9, the uppercase and lowercase English alphabet, and some special characters).
The higher part of ISO-8859-1 (codes from 160-255) contains the characters used in Western European countries and some commonly used special characters.
Entities are used to implement reserved characters or to express characters that cannot easily be entered with the keyboard.