It's the frequency at which the backlight of the panel operates at.
Higher frequency (measured in Hertz usually or HZ), backlights can reduce perceived stuttering from low frequency sources.
It's closely related to frame rate and actual panel refresh rate.
From my understanding:
Think of the pixels of the panel and the backlight as 2 separate pieces (which they are in typical panel types)
For content displayed at differing frame rates on the pixel part of the panel, a higher frequency backlight makes more sense.
If the content on the picture is moving quickly or is of a high frame rate, a higher frequency backlight will create an effect of smoothing the video. The content can't obviously switch frame rates to match the panel and vice versa (without implementation of dynamic frame rates such as games and tools such as Vsync OR a dynamic refresh rate panel such as G-Sync or FreeSync) so the higher frequency backlight will appear to reduce blur, ghosting etc.
Higher frequency backlights also aid, through reduced blur/ghosting, with creating an image that appears more sharp.
Real life example: Think of the pixel layer of a monitor as the image of the world around you. Think of the backlight as the lights in the room, sunlight etc. If you blink your eyes quickly while turning your head or if the lights in the room were cycling on and off, the faster you blink your eyes or the faster the light flashed on and off, the smoother the motion would seem.
That example assumes an unlimited source frame rate or pixel layer refresh rate.
That's my limited understanding.