205 refers to the tyre width in millimetres, 55 is the profile (sidewall height as a percentage of the width), and R16 indicates the tyre fits a 16-inch wheel.
This size is widely fitted to family hatchbacks and compact estates, including many versions of the Volkswagen Golf, Audi A3, Skoda Octavia and Ford Focus.
Most vehicles using this size require a load index of 91 with a speed rating such as H or V, but you should always check your vehicle handbook or current tyre sidewall to confirm the correct specification.
Yes, tyres with a higher load index or speed rating are generally acceptable, but fitting lower-rated tyres than specified is not recommended.