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Can any one explain what is the use of GD2 and ImageMagick while uploading images in backend in magento 2.

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ImageMagick delivers better quality images on front end. It may however slow the loading of your pages. I do not believe that it has any relation/affect on uploading images via the Admin.

Other posts that have helped me:

https://stackoverflow.com/questions/11392936/how-to-upload-a-image-on-imagemagick

Magento 2: Image Processing Settings - GD2 V/s ImageMagick

Magento 2 low image quality on products

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