Back in those days, Apple still used SCSI drives on its Power Macs - as did the clone makers.
SCSI devices are somewhat intelligent, unlike IDE/ATA/SATA drives which are under control of the operating system and hardware interface. To the best of my knowledge, there is no maximum size for SCSI drives. Mac OS 7.5.1 and earlier cannot handle partition sizes over 2 GB, and from 7.5.2 through 8.0, the maximum is 4 GB. On top of that, you can have up to 8 (or was it 9) partitions per drive. With the introduction of HFS+ in Mac OS 8.1, that jumped to 2 TB.
If you're using more modern hardware with IDE/Ultra ATA hard drives, be sure to read How Big a Hard Drive Can I Put in My iMac, eMac, or Power Mac?, which explains the 128 GB limitation of the IDE bus in G3 and some G4 Macs.