What is the ubuntu-minimal package and do I need it?

ubuntu-minimal is a metapackage.

Here's partial output of the apt show command:

apt show ubuntu-minimal        
Package: ubuntu-minimal
Version: 1.417
Priority: important
Section: metapackages
Source: ubuntu-meta
Origin: Ubuntu
Maintainer: Ubuntu Developers <[email protected]>
Bugs: https://bugs.launchpad.net/ubuntu/+filebug
Installed-Size: 48.1 kB
Depends: adduser, apt, apt-utils, bzip2, console-setup, debconf, debconf-i18n, eject, init, initramfs-tools, iproute2, iputils-ping, isc-dhcp-client, kbd, kmod, less, locales, lsb-release, mawk, mount, netbase, netcat-openbsd, nplan, passwd, procps, python3, sensible-utils, sudo, tzdata, ubuntu-advantage-tools, ubuntu-keyring, udev, vim-tiny, whiptail
Recommends: rsyslog

A metapackage is a list of software that specifies what is installed on your system during the initial installation process and when you upgrade from one version of your OS to another. See What are the downsides of removing ubuntu-desktop metapackage? for example.

Removing a metapackage is otherwise harmless.

While you maybe able to remove vim-tiny, the benefits would be negligible and somewhere down the line some other software you install may pull it back in.

As explained earlier, 'ubuntu-minimal' is meta package. It 'requires' the installation of a bunch of other packages which the powers that be consider essential to the smooth operation of a minimal Ubuntu installation.

Removing it has no impact on currently installed packages. Removing it WILL prevent the future automatic installation of any other package deemed (in their opinion) essential. [ The package 'ubuntu-advantage-tools' comes to mind. ]

So: Yes, you can remove 'vim.tiny' and 'ubuntu-minimal' with no ill effects, subject to the above caveat.

But when you do, use a dry-run ( 'apt -s ...' ) first and check the output to ensure you are only removing the package(s) you really want to remove...