It just specifies what interpreter you want to use. To understand this, create a file through terminal by doing touch test.py, then type into that file the following:
#!/usr/bin/env python3 print "test" and do chmod +x test.py to make your script executable. After this when you do ./test.py you should get an error saying:
File "./test.py", line 2 print "test" ^ SyntaxError: Missing parentheses in call to 'print' because python3 doesn't supprt the print operator.
Now go ahead and change the first line of your code to:
#!/usr/bin/env python2 and it'll work, printing test to stdout, because python2 supports the print operator. So, now you've learned how to switch between script interpreters.