According to https://wiki.gentoo.org/wiki/Linux_firmware,
Linux firmware is a package distributed alongside the Linux kernel that contains firmware binary blobs necessary for partial or full functionality of certain hardware devices. These binary blobs are usually proprietary because some hardware manufacturers do not release source code necessary to build the firmware itself.
For example, my bluetooth pcie device requires linux-firmware/qca/htbtfw20.tlv. Is this a kernel driver? Why the format .tlv, and why some are .bin? Generally kernel drivers are ELF executables.