Steganography is the practice of placing a secret message inside another message and only by looking at the original message in a different way can the hidden message be seen. This might be as mundane as writing a page of text and hiding a message in the text using the first letter of every sentence. Only by collecting the first letter of each sentence together can the hidden message be seen and read.
Modern steganography is defined as hiding a message (or file) inside a file. For example, you might look at an image and see an image, but if a message has been hidden you would also be able to extract it if you know where to look.