PHP stands for PHP: HyperText Preprocessor and is the most popular server-side scripting language designed for web development.
PHP code is interpreted by a web server with a specific PHP module prior to displaying any content to the end user. Once the code has been interpreted and any calculations or data manipulation has occured then a web page will be generated for you to see as an end result.
This allows web designers to design sites with dynamic content that changes based on things like user input, it can evaluate form data, and even send and recieve data to and from other places, it's also widely used to interact with information held in a database and outputs pages based on that data.
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