The Haba├▒era is the audience's introduction to Carmen's character. She and the girls have just spilled out of the cigarette factory on a break. Local men are hanging round outside. These men and the factory girls provide the choral responses to Carmen's song.
The text is a straight description of Carmen's personality, offered as both tease and threat. As well as being technically complex, it's a test of acting for the singer.
It's also often a test of the director's ability to encourage a sense of smouldering sexuality whilst discouraging blatant exhibitionism. Particularly amongst the chorus.