Hydraulic diameter is essential for calculating Reynolds number and heat transfer coefficients, defined as the cross-sectional area divided by the wetted perimeter. The formula is D(h) = 4*A / P(w), simplifying to D(h) = D for circular shapes. For rectangular tubes, especially when sizes vary, the calculation may involve considering the total area of the openings, including any triangular or trapezoidal ends. The discussion highlights the importance of understanding geometry in hydraulic diameter calculations. Accurate calculations are crucial for effective fluid dynamics analysis.