Good basic article on BIOS:
http://pcsupport.about.com/od/termsb/p/bios.htm
General Definition: Basic Input/Output System (also known as the System BIOS), is a type of firmware used to perform hardware initialization during the booting process (power-on startup), and to provide runtime services for operating systems and programs.
Essentially it is the firmware on your motherboard that makes all your other hardware work together correctly.