PuTTY is a free implementation of Telnet and SSH for Win32 and Unix platforms, along with an xterm terminal emulator. It is written and maintained primarily by Simon Tatham.
In really simple terms: you run PuTTY on a Windows machine, and tell it to connect to (for example) a Unix machine. PuTTY opens a window. Then, anything you type into that window is sent straight to the Unix machine, and everything the Unix machine sends back is displayed in the window. So you can work on the Unix machine as if you were sitting at its console, while actually sitting somewhere else.