Capsule version - EF-S lenses project a smaller image circle, which covers an APS-C sensor but it too small for an APS-H or FF sensor. The advantage is that a smaller image circle means smaller elements (in the case of wide angle lenses), easier to design lenses, and thus lower costs. Most of Canon's EF-S lenses also have a short back focus (meaning a shorter physical length of the lens, Nikon and 3rd party lenses don't), which means a mirror larger than that for an APS-C sensor will hit the lens, so they designed the mount to prevent that from happening.