From HTML5 Rocks:
Basically it's a way to map a combined/minified file back to an unbuilt state. When you build for production, along with minifying and combining your JavaScript files, you generate a source map which holds information about your original files. When you query a certain line and column number in your generated JavaScript you can do a lookup in the source map which returns the original location. Developer tools (currently WebKit nightly builds, Google Chrome, or Firefox 23+) can parse the source map automatically and make it appear as though you're running unminified and uncombined files.
http://www.html5rocks.com/en/tutorials/developertools/sourcemaps/