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Widgets are basically a display window or active interface for an app. For example, a weather app may have a widget that displays the current temperature, etc. If you have the widget on a page you can see the temperature without opening the app.
Originally Posted by capsfloyd
You can add widgets to any page by long pressing on an open area of the page and clicking on "Apps and widgets" in the popup that appears, then select the widget tab and pick the widget you want. Press on that widget and keep pressing while you drag it to the page. You can delete a widget on a page by long pressing on it and dragging it to the garbage can that appears at the top of the page. For more info., do a Google search for "understanding android widgets" and you'll get several video and other hits.