Most of the work we do with MySQL is for the web. Whether you use Dreamweaver or PHP or any other means of displaying MySQL data on the web, your username and password must be embedded in your web files and readable to the web server.
This means that your username and password are readable by anybody who shares access to your server.
Because of this, most web hosting providers that give you MySQL access will give you multiple passwords. Each provider will have different policies, but you are likely to receive:
You should ensure that the level of security you have on your server matches the level of security that you need. Remember that in any scenario other people who have accounts on your server will be able to do anything to your records that your web page can. You should only store information in your database that you are comfortable with, knowing that this is true.
If you are at a university, working on a departmental web page, often every other department has access to the same web server that you do. Whoever the other departments let work on their files, can see your files and thus can see your password.
If you are at a university, working on a personal or professional web page, or hosting your web pages on a third-party hosting provider, usually everyone else at the provider will have access to the same web server. Every one of them will be able to access your files and thus see your password. Store information only to the extent that you trust those others and that you would not mind them seeing--or changing.
Because of this, regular backups are essential. You should make backups as often as you change data.