A good way to think about density matrices is to think about them as Bloch Vectors (I assume you are familiar with the Bloch Sphere). This won't tackle your question head on; but I hope will give some motivation for what each of the numbers in the density matrix means.
You see, every $2\text{x}2$ matrix can be decomposed into a linear superposition of $\mathbb{1}, \sigma_z, \sigma_x. \sigma_y$; they form a basis over the space of $2\text{x}2$ matrices. Therefore we can rewrite every density matrix $\rho$ as such:
\begin{aligned}\rho &={\frac {1}{2}}\left(I+{\vec {a}}\cdot {\vec {\sigma }}\right)\\&={\frac {1}{2}}{\begin{pmatrix}1&0\\0&1\end{pmatrix}}+{\frac {a_{x}}{2}}{\begin{pmatrix}0&1\\1&0\end{pmatrix}}+{\frac {a_{y}}{2}}{\begin{pmatrix}0&-i\\i&0\end{pmatrix}}+{\frac {a_{z}}{2}}{\begin{pmatrix}1&0\\0&-1\end{pmatrix}}\\&={\frac {1}{2}}{\begin{pmatrix}1+a_{z}&a_{x}-ia_{y}\\a_{x}+ia_{y}&1-a_{z}\end{pmatrix}}\end{aligned}
Where $(a_x,a_y,a_z)$ are real numbers representing the vector of our state $\rho$ on the Bloch sphere. Of course there are many ways to interpret this information; the relative probability of measuring the state in any basis comes to mind. But something that is really interesting is that the shorter the Bloch vector, the more mixed our state; for a Bloch vector of norm $1$ we have a pure state.
This is a bit more general than what your question was asking about; but clearly you can see that the diagonal elements of the matrix play a role in our analysis here.
For multi Qubit systems; there are various ways of approaching the problem; one which Linear Algebra afficonatos will enjoy is using higher dimensional Bloch Bodies, and doing the same style of matrix decomposition, only now you have a larger basis, and a different geometric structure to interpret your decomposition by (not a sphere). This style of thinking about the problem emphasizes very well how mixedness changes with higher dimensional quantum systems; and in fact your maximally mixed state in a system of $n$ Qubits has Purity $\frac{1}{2^n}$, this result is geometrically obvious using Bloch Bodies
A more common way to think about multi Qubit Systems is through partial traces of the overall density matrix; this has been answered many times on this SE, I will link some posts.