Parallax is the difference in the focus plane of the target and the recticle. In a scope corrected for parallax at a given range, the recticle is on the same plane (virtual) as the target. No matter where your eye is in relation to the center of the optical axis, the impact point equals the aiming point.
When there is a parallax error, the only time the impact point is the aiming point is when your eye is perfectly centered on the optical axis of the scope. Think of parallax error like your car's speedometer needle in relation to the scale. If the needle shaft is considerably long so that the needle is a good distance from the scale, the only time you can accurately judge spped is when your eye is directly over the needle. Move your head and the indicated speed changes even though the car's velocity is constant.
Adjustable objective scopes (scopes with an adjustment on the bigger front lens) allow one to correct, bringing the recticle on the same focal plane as the target, optically melding the recticle to the target. Red dot scopes have great hyperfocal (big word meaning deep focal plane) distance due to low magnification and corresponding smaller objectives.
Parallax is most critical on high magnification, large objective scopes and short-range work like air rifle scopes.
You can observe parallax if you have a rifle cradle. Center the recticle on a target and then move your head to shift your eye off the optical axis. You will see the aiming point move even though the rifle has not.