A domain name which is simple to understand will give higher ranking than a normal domain.
For instance, a domain like www.mydomain.com/folder1/101010/123.htm will be very confusing and unfriendly. To make it better you can use URLs like www.mydomain.com/baseballs/cards/rarest-cards.htm, It not only friendly to user but also to search engines. Well structured URLs leads to better crawling in search engines.
Note: If others are linking to your website, using a well structured URL will provide both users and search engines with more information about your website.