Powder size and morphology affects the behavior of the powder when dispensing, recoating, and lasing. One of the important properties that stems from this is how flowable a powder is. Typically, the more flowable a powder is, the better. There are several measurements of this, such as angle of repose (the highest angle that the powder sits at when mounded) or powder viscosity (the resistance of a powder to flow, measured on a rheometer). Powder that is not flowable can have difficulty recoating the powder bed, resulting in nonuniform layers. It can also jam the powder hopper so no powder is dispensed at all.
Particle size has a variety of effects, and should generally be around two to three times smaller than your selected layer height. If the particles are too large, single particles can leave print defects from dragging along the powder bed and cause poor packing and density when sintered. If the particles are too small, it will have a higher tendency to aerosolize and will act like an insulative blanket, so the bottom of a layer may not sinter fully.