The term DNS stands for Domain Name System.
It is used over the internet as a directory system to translate an IP address such as 123.45.67.89 into an easily recognisable name like digitalguppy.com. This means people can use names instead of remembering numbers, making the Internet easier to use.
The nameserver on a domain name tells the Internet where to look for the DNS information; the DNS information in turn tells your computer where to load the website from, send emails to, etc. Within the DNS information, there are a number of records which serve different purposes.
I still don't fully understand DNS
If you’re still not 100% confident with DNS, please watch this short video: http://www.youtube.com/watch?v=72snZctFFtA