How does MySQL store a varchar field? Can I assume that the following pattern represents sensible storage sizes :
1,2,4,8,16,32,64,128,255 (max)
A clarification via example. Lets say I have a varchar field of 20 characters. Does MySQL when creating this field, basically reserve space for 32 bytes(not sure if they are bytes or not) but only allow 20 to be entered?
I guess I am worried about optimising disk space for a massive table.
MySQL stores a varchar field as a variable length record, with either a one-byte or a two-byte prefix to indicate the record size.
Having a pattern of storage sizes doesn't really make any difference to how MySQL will function when dealing with variable length record storage. The length specified in a varchar(x) declaration will simply determine the maximum length of the data that can be stored. Basically, a varchar(16) is no different disk-wise than a varchar(128).
This manual page has a more detailed explanation.
Edit: With regards to your updated question, the answer is still the same. A varchar field will only use up as much space on disk as the data you store in it (plus a one or two byte overhead). So it doesn't matter if you have a varchar(16) or a varchar(128), if you store a 10-character string in it, you're only going to use 10 bytes (plus 1 or 2) of disk space.
To answer the question, on disk MySql uses 1 + the size that is used in the field to store the data (so if the column was declared varchar(45), and the field was "FooBar" it would use 7 bytes on disk, unless of course you where using a multibyte character set, where it would be using 14 bytes). So, however you declare your columns, it wont make a difference on the storage end (you stated you are worried about disk optimization for a massive table). However, it does make a difference in queries, as VARCHAR's are converted to CHAR's when MySql makes a temporary table (SORT, ORDER, etc) and the more records you can fit into a single page, the less memory and faster your table scans will be.