It's when 2 or more databases are made to match each other. Could be photos, documents, music - it doesn't matter.
For example, lets say your phone is setup to check mail every 30 minutes, download new email and sync the inbox on the phone with the inbox on the email server.
Last time it made a mail pass you had 1000 emails even in the inbox on your phone when it finished syncing. The email server inbox also had 1000 emails, the same 1000 emails. The databases are "in sync", they have exactly the same information.
Since then, you deleted 50 emails, leaving 950 on the phone.
25 new emails have arrived to the email server, so it now has 1025.
The inbox databases on the phone and email server are not the same. They are "out of sync".
The phone makes another mail pass.
50 emails are deleted on the email server, leaving 975.
25 emails are downloaded to the phone's inbox. It now has 975.
The email pass is complete. Both the phone and the mail server have 975 emails in the inbox, the same 975 emails. The databases are now in synchronisation.
That's data synchronisation.