its for identifying how the value is parsed.
there other values are Basic and Digest which are sending the password to the server.
basic is base64 encoded username:password, Digest is similar but the data is hashed with md5 and contains a nonce that can be used to prevent replay attacks.
There are many types of authentication scheme [2]
Commonly used to distinguish between Basic (with userid/password) and Bearer (authorisation using a token).
[1] https://www.devopsschool.com/blog/what-is-bearer-token-and-h...
[2] https://www.iana.org/assignments/http-authschemes/http-auths...