What is meant by Multisite in WordPress?

WordPress Multisite allows you to use one WordPress code installation to run multiple websites.

mywebsite1.com
mywebsite2.com
mywebsite3.com
etc

All run from the same code, can share the same plugins, can share the same themes (but use different themes), share the same admin login (but different sites can be limited to different editors), keep all data in the same database (but stored in different, not-shared tables).