PL/SQL allocates memory for the variable's at runtime or at
compile time
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Answer Posted / gaurav
For a CHAR variable, PL/SQL allocates at compile time enough memory for the maximum size.
For a VARCHAR2 variable, memory allocation depends on maximum size:
If the maximum size is less than 4,000 bytes, PL/SQL allocates at compile time enough memory for the maximum size.
If the maximum size is 4,000 bytes or more, PL/SQL allocates at run time enough memory for the actual value.
Thus, PL/SQL optimizes smaller VARCHAR2 variables for performance and larger ones for efficient memory use. ( from oracle doc)
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