It's used when discussing propulsive efficiency, as it's a proxy measurement for how much "work" each blade is doing. Because propeller/rotor blades are just high-aspect wings, if you have high disc loading your blades are at a high lift coefficient which means they'll be incurring lots of lift-induced drag which increases your power requirements.
Solidity in the same context refers to the amount of volume within an actuator disk that's occupied by actual solid material. If you have a 4-bladed rotor and you move to a 5-bladed rotor, all else equal, you've increased your solidity.
There are many many equations, and as most things in fluid mechanics you can get as deep into the weeds as you want. As a starting point, have a look at the wiki article for Blade Momentum Theory[0]