Generally, tensors can be contracted with different things to produce various other objects. For example, if you take a vector and parallel transport it around a small parallelogram (defined by two more vectors) then the vector will change slightly (in curved spacetime, anyway). This is characterised by the Riemann tensor, ##R^a{}_{bcd}##. If you have a vector that you wish to parallel transport then you call it ##V^b##, to associate it with the second index of the Riemann. If you know your parallelogram vectors you call them ##p^c## and ##P^d##, to associate them with the third and fourth indices. Then ##R^a{}_{bcd}V^ap^bP^c## is a vector ##(\delta V)^a##.
To put it more generally, tensors have different "slots" to which you can attach other vectors and tensors. In index notation, you keep track of which slot is which by the order of the indices, and remembering the significance of slot 1, 2, etc (which is just a convention).
The upper and lower positions relate to whether that part is covariant or contravariant. In relativity this isn't hugely significant, since you can always raise or lower an index by contracting it with the metric tensor (which sometimes makes maths easier, but doesn't otherwise change all that much). Do remember that if you wish to sum over a pair of indices, one must be upper and one lower.
So you need to write ##R^a{}_{bcd}## because if you wrote ##R^a_{bcd}## it wouldn't be clear if ##a## was the first index and ##b## the second, or the other way around after you'd raised one index and lowered the other.
Getting back to your example, ##\Lambda## (assuming you mean the Lorentz transform) is a coordinate transform, not a tensor. A lot of the same rules apply, though. As
@etotheipi says, this is a standard way of notating forward and reverse transforms (I think that there are different conventions, though, so do be aware). Whenever you are transforming the components of a vector, match the vector's index (upper) to the lower index of the ##\Lambda##. Whenever you are transforming a one-form, match its index (lower) to the upper index of the ##\Lambda##, whichever way round they are.