Here, it's the element on which jQuery is acting. So for example if you assign a click event:
Code:
$('#myelement').click(function(){
$(this).css("background-color","yellow");
});
then $(this) would refer to #myelement. This becomes more useful when the selector applies to multiple elements:
Code:
$('.myelements').click(function(){
$(this).css("background-color","yellow");
});
when it will apply to whichever element having class
myelements was clicked. Another common usage might be within .each():
Code:
$('.myelements').each(function(){
$(this).css("background-color","yellow");
});
where it would apply to each element having class
myelements in turn through the .each iteration.
That might do you for starters - for some more detail Google finds
this article.