it depends on the module, but nearly all of them use content per instance, i.e. everytime you add a new module on a page, it will have its own content - while "use existant module" will add a reference to existing content. With Blog it is a bit different, because it allows a central blog roll, like on the blogs page of this site, and individual blogs on other pages, i.e. you have a central instance (not necessarily visible to the public), where people may setup their blog and subsequently each individual blog may be placed (using blog module) on the author's page.

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Cheers from Germany,
Sebastian Leupold

   

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