That is a question which you could find a very full answer to by googling it!
In brief a vpn (virtual private network) connection uses the internet to securely connect your device to another server. This could be your companies server or a server which then gives you anonymous Internet access. People use vpn to appear to be in another country eg a vpn server in uk lets you use the bbc iplayer service which is not meant to be available outside the uk.
Android has a configuration screen in settings for vpn servers. There are lots of vpn apps in playstore. I use vpnintouch but im sure others are also good. I believe the most reliable are not the free ones.
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