In addition you can specify the unit in which the result should be returned:
select state, county, sdo_geom.sdo_area(geom, 0.005, 'unit=sq_mile')
from us_counties;
returns the area in square miles. When you do not specify any unit, the result will be in square meters if the geometries are in geodetic coordinates, in the square of the distance unit for the coordinate system when they are projected. This is generally square meters too since most projections are in meters (but not all: some US projections are in feet).
I recommend always specifying an explicit unit, even if you want square meters. This makes your code more readable and lifts any ambiguities.
You can find the available area units here:
select distinct short_name, unit_of_meas_name
from sdo_units_of_measure
where unit_of_meas_type = 'area';
which returns
SHORT_NAME UNIT_OF_MEAS_NAME
-------------------- ------------------------------
ACRE Acre
HECTARE Hectare
PERCH Perch
ROOD Rood
SQ_KM Square Kilometer
SQ_KILOMETER Square Kilometer
SQ_M Square Meter
SQ_METER Square Meter
SQ_CM Square Centimeter
SQ_CENTIMETER Square Centimeter
SQ_MM Square Millimeter
SQ_MILLIMETER Square Millimeter
SQ_MILE Square Mile
SQ_FT Square Foot
SQ_FOOT Square Foot
SQ_IN Square Inch
SQ_INCH Square Inch
SQ_YARD Square Yard
SQ_CH Square Chain
SQ_CHAIN Square Chain
SQ_LI Square Link
SQ_LINK Square Link
SQ_ROD Square Rod
SQ_SURVEY_FOOT Square Survey Feet
USER-SQ-HALF-METER USER-SQ-HALF-METER
25 rows selected.