Converting AVI to MP4 takes video out of an old Windows container and puts it in one that phones, browsers and smart TVs actually open. The picture is copied across when MP4 can hold its codec and re-encoded to H.264 when it cannot. It cannot look better than the AVI you started with.
Transfers use HTTPS, and files converted on the free tier are deleted after 24 hours, so the result is not a long-term archive. Quality depends on the source file, so open the MP4 file once before you share it.
FromAVILossy
AVI (Audio Video Interleave)
A container Microsoft introduced in 1992 with Video for Windows. It usually holds older codecs such as DivX, Xvid, Motion JPEG or DV, with MP3 or uncompressed PCM audio, and it predates streaming and modern compression features.
ToMP4Lossy
MP4 (MPEG-4 Part 14)
The container used by current phones, cameras and streaming services. It was designed for codecs with reordered frames, variable frame rates and playback that starts before the download finishes, three things the older AVI structure handles awkwardly.