What is the TOAD schema and why is it needed?
When installing server side objects, if you choose to install the objects into the Toad schema, the TOAD schema is created. It will be use to administer the server side objects.
This schema gives one a central location from which to maintain the tables needed to run the install server side objects. You could create some of these objects (Explain Plan and Profiler) in every schema in which you intend to use them (in other words, every schema would have these same tables) but if you have a large number of users, using the Toad schema is more efficient. In addition, Toad Security, ObjectName, and Team Coding must reside in the Toad schema.
If you do not want to create the Toad user, you can create and administer certain objects in the schemas where you intend to use them. This may be more efficient if you have a small number of users for these special features and you do not want all of your users to have access.