You don’t want to give someone a title equal to your highest title lest you want them to become and independent nation, and you want to spread the wealth around a bit to avoid one family consolidating too much power. Since these people will remain your vassals the land will still count towards your realm, but you’ll need to be mindful of who you’re giving all this power to. To mitigate this you will need to assign some of these territories to a different character, giving them the title and ownership of the land.
These adverse effects range from lower taxes and levies, to your vassals developing negative opinions of you. Thing is, you can only control so many holdings in general within Crusader Kings III (the buildings on the map under your direct control), and a mere two duchies within a kingdom before penalties kick in. Once you own a title that territory is added to your realm and domain. if you own the title for a duchy, but not a title for all its counties, you can legally go to war for those missing titles. I bring this up, because you can seize lower tier titles if you own the title for the larger tier of territory they belong within: I.E. I go into much greater detail about claims in the guide here, but the idea is equally simple – claims are titles you have a right to, well, claim. An important facet of titles you need to understand are claims.
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