"Until Lua 4.0, tables were implemented strictly as hash tables: all pairs were explicitly stored. Lua 5.0 brought a new algorithm to optimize the use of tables as arrays: it optimizes pairs with integer keys by not storing the keys and storing the values in an actual array. More precisely, in Lua 5.0, tables are implemented as hybrid data structures: they contain a hash part and an array part. Figure 2 shows a possible configuration for a table with the pairs "x" → 9.3, 1 → 100, 2 → 200, 3 → 300. Note the array part on the right: it does not store the integer keys. This division is made only at a low implementation level; access to table fields is transparent, even to the virtual machine. Tables automatically and dy- namically adapt their two parts according to their contents: the array part tries to store the values corresponding to integer keys from 1 to some limit n. Values corresponding to non-integer keys or to integer keys outside the array range are stored in the hash part.
When a table needs to grow, Lua recomputes the sizes for its hash part and its array part. Either part may be empty. The computed size of the array part is the largest n such that at least half the slots between 1 and n are in use (to avoid wasting space with sparse arrays) and there is at least one used slot between n/2 + 1 and n (to avoid a size n when n/2 would do). After computing the new sizes, Lua creates the new parts and re-inserts the elements from the old parts into the new ones. As an example, suppose that a is an empty table; both its array part and hash part have size zero. If we execute a[1]=v, the table needs to grow to accommodate the new key. Lua will choose n = 1 for the size of the new array part (with a single entry 1 → v). The hash part will remain empty."
From "Implementation of Lua 5.0" -- http://lua.org/doc/jucs05.pdf