Daggerfall Unity: StrengthEdit
Strength is one of the attributes in the game. It modifies the damage you do in combat as follows:
(int)Mathf.Floor((float)(strength - 50) / 5f);
In plain language, this is ((Strength - 50)/5). A character with 10 strength will have a damage modifier of ((10-50)/5), or (-40)/5, or -8, on each combat hit. A character with 85 strength will have a damage modifier of (85-50)/5, or 35/5, or +7 on each hit.
Additionally, Strength determines your character's maximum encumbrance. The maximum carry weight is (Strength x 1.5).