In technical terms, a VLAN is a broadcast domain created by switches. Normally, it is a router creating that broadcast domain. With VLAN’s, a switch can create the broadcast domain.
This works by, you, the administrator, putting some switch ports in a VLAN other than 1, the default VLAN. All ports in a single VLAN are in a single broadcast domain.
Because switches can talk to each other, some ports on switch A can be in VLAN 10 and other ports on switch B can be in VLAN 10. Broadcasts between these devices will not be seen on any other port in any other VLAN, other than 10. However, these devices can all communicate because they are on the same VLAN. Without additional configuration, they would not be able to communicate with any other devices, not in their VLAN.