Recursion refers to a method which solves a problem by solving a smaller version of the problem and then using that result plus some other computation to formulate the answer to the original problem. Often times, in the process of solving the smaller version, the method will solve a yet smaller version of the problem, and so on, until it reaches a "base case" which is trivial to solve.
For instance, to calculate a factorial for the number X, one can represent it as X times the factorial of X-1. Thus, the method "recurses" to find the factorial of X-1, and then multiplies whatever it got by X to give a final answer. Of course, to find the factorial of X-1, it'll first calculate the factorial of X-2, and so on. The base case would be when X is 0 or 1, in which case it knows to return 1 since 0! = 1! = 1.