A tag is a non-hierarchical keyword or term assigned to a piece of information (such as an internet bookmark, digital image, or computer file).1
Simply put, tags are keywords that help you find information which have something in common. If you wanted to find more articles on this site relating to Kilmarnock, History, and Fun, you can, thanks to tags!
Another common term that refers to tags is tag cloud, a tag cloud is a stylized way of visually representing occurrences of tags. The most popular topics are normally highlighted in a larger, bolder font. Visitors to a blog or site using a tag cloud, are able to easily see the most popular tags within the page making it easy to discern the topics covered in one quick look.2
An example of a Tag Cloud can be found here.

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