AN (Army-Navy) sizes were established by the Aerospace industry years ago and were designated O.D. of the rigid metal tube that each size fitting is used with. (the chart below will clarify this point.)
The numbers assigned equate to the O.D. (outside diameters) of the tubing in 1/16". Since tubing and hoses are to be found with assorted wall thicknesses we can now understand that the designated size number does not necessarily tell you how large the inside diameter will be.
Each AN size number has its own standard thread size which can be seen in column three of the chart. Again, these are the same thread sizes that have been used in aircraft and industrial applications for many years.