It's the file downloaded to your unit to make it easier for the unit to acquire the satellite signals. Ususally available every da, it gives the satellite positions for the next 5 (or is it 7) days.
It's listed when you Update My Unit is clicked.
Some never bother dl the file and say they have no problem acquiring the signal; in truth, your unit CAN get the signal without the updated file, it just may be slower to do so.
I would describe it as letting the unit know the position of the satellite.
i.e.
If you don't update the ephemeris data and the Sat has wandered on in its orbit and relative to the other Sats referenced then the resulting map position will be off by the difference in where the Sat actually is and where the old ephemeris data is saying it is.A GPS receiver's job is to locate four or more of these satellites, figure out the distance to each, and use this information to deduce its own location. This operation is based on a simple mathematical principle called trilateration. http://www.howstuffworks.com/gps.htm