The Upsample effect module lets you change the number of bits that are needed to define a single sample in a sound.
You can only do this on the whole document, not just on a selection or on some channels. If you try to run the effect when a portion of the sound is selected, you will be asked if you want to upsample the whole sound.
Usually, you will want to upsample from 8 bits to 16 bits or more, in order to work on a higher-quality sound.