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The lease time is the period of time that the IP address allocated to you is yours to use. At the end of the lease, if you have not yet renewed it, the IP is free to be handed out to another user.
In the average home router, your lease time is set for about 24 hours (1440 minutes). Some people set 8-hour leases, some prefer up to a week! The DHCP lease is how long a device reserves an IP address on your network. The DHCP reservation is the key.
For a home network, the default 24 hours (1440 minutes or 86400 seconds) is fine. The amount of devices in a home network is limited, maybe up to 3 per household member where your pool of IP addresses is around the 200 addresses. But a higher lease time of 8 days would work evenly good.
DHCP Leases. A lease is defined as the time period for which a DHCP server allocates a network address to a client. The lease might be extended (renewed) upon subsequent requests. If the client no longer needs the address, it can release the address back to the server before the lease is up.
The DHCP client renews its IP configuration data prior to the expiration of the lease time. If the lease period expires and the DHCP client has not yet renewed its IP configuration data, then the DHCP client loses the IP configuration data and begins the DHCP lease generation process again.
In short, DHCP Lease Time is the amount of time in minutes or seconds a network device can use an IP Address in a network. The IP Address is reserved for that device until the reservation expires. The Lease Time indicates how long a device is allowed to use that IP Address.
On a typical home or small office router a DHCP lease may last between eight and 24 hours. Each time the lease is renewed (which happens automatically), there's a chance the device will receive a different IP address.
When your router receives a non-static DHCP assigned IP address from your ISP there is a predefined time limit built into the assignment, this time limit is called a DHCP Lease. The typical lease time for ISP's in the United States is roughly 7 days.
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