This is how we defined the domain $D(A)$ and the operator $A$ of a semigroup:
Let $(P_t)_{t>0}$ be a semigroup of linear contractions on $L$. Let $$D(A) := \left\{ f\in L : \operatorname*{\mathit{s}-lim}_{h\downarrow 0} \frac 1 h [P_h f-f] \text{ exists in $L$}\right\}.$$ We define an operator $A$ on $D(A)$ by $$Af := \operatorname*{\mathit{s}-lim}_{h\downarrow 0} \frac 1 h [P_h f-f], \qquad\text{for $f\in D(A)$.}$$ Then $A$ is linear but not necessarily bounded with domain $D(A)\subset L$. The operator $A$ is called generator of $(P_t)_{t\ge 0}$.
Is there an intuitive reason/image why $A$ is the generator of $(P_t)$? And what is the reason?
A good reason to call $A$ the generator of the semigroup once you develop some of the theory is that it genuinely "generates" the semigroup in the sense that given the operator $A$ you can recover the entire semigroup.
This is the content of many generation for theorems for $C_0$-semigroups (which are slightly more general than contraction semigroups). For example, the most famous such result is the Hille-Yosida theorem, which I state for contraction semigroups below.
These two defining formulas may look strange, but they are both inspired by the fact that we ought to have $P_t = e^{tA}$. When $A$ is bounded, $e^{tA}$ is defined by its power series and coincides with all of the other expressions. Unfortunately, in most interesting cases $A$ isn't bounded so we can't define the right hand side via its power series since that doesn't converge. This leads us to the expressions stated in Hille-Yosida.