“tools:context” is one of the Design Attributes that can facilitate layout creation in XML in the development framework. This attribute is used to show the development framework what activity class is picked for implementing the layout. Using “tools:context”, Android Studio chooses the necessary theme for the preview automatically.
If you’d like to know more about some other attributes and useful tools for Android app development, take a look at this review: http://cases.azoft.com/4-must-know-tools-for-effective-android-development/