The activity diagram describes the sequence of activities involving software, showing from the user’s actions to the completion of software functions.
In the above example I describe a simple diagram of a rental company’s activity using rental registration software, in which I follow since the action of an actor request the lease, proceeding with the steps that superficially describe the functions of the software with decision points generally referred to the actor.
So to sum up, the activity diagram describes all the functionality of the software describing the activities that lead up to its execution and to the completion of its execution. (In the above example "Request allocation" is not referring to the software itself, but rather to the employees of the rental company, usually along with the activity diagram a table describing each functionality better.