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Find eigen values in terms of norm and eigen vector

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What is the meaning of "EIGENVALUE > 1" criterion? I understand what eigenvalues and eigenvectors are.

This question is w.r.t. this link and this statement there:

By default, VARCLUS stops SPLITTING when EVERY cluster has only one eigenvalue greater than one, THUS satisfying the most popular criterion for determining the sufficiency of a single underlying dimension.
I know it is a criterion for the number of clusters but how can one visualize and understand its meaning?

I have GONE through this thread on principal component analysis but still do not understand it.



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