FTP is the File Transfer Protocol, just like HTTP (which you see in the address bar presently) is the HyperText Transfer Protocol. Don't ask me how they work, because I don't actually know.
FTP allows fast, easy transfer of files between computers and servers, taking a fraction of the time that HTTP requires. The downside is the files are not readable by the browser until they are downloaded or uploaded. For this reason, you should NEVER download a file from a FTP server if you are not sure of what it is, even if it claims to be a simple .html file.
To use FTP, you would require a FTP client (such as FileZilla
http://filezilla-project.org/), your site URL or IP address, and the FTP username and password for your site. Your host should be able to help you with the last one. Once you are connected to the server, you can upload or download files and folders.
If you have built and tested your site entirely within localhost (running the files from your hard drive), it is recommended to upload the entire folder at one time. This ensures the files are uploaded in the same hierarchy, and in turn preserves link integrity.
If you have any other questions, please ask.
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