RAW means the camera does no internal processing before writing the image to your media card; it records all of the information exactly as it comes off the image sensor. Allows you MUCH greater flexibility in post-processing/editing; you can play with the white balance, tint/tone, exposure, etc.
Basically, any setting you can adjust on your camera that affects the final image, you can adjust after the fact, sitting at your computer, instead of before the image is captured.
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Basically, any setting you can adjust on your camera that affects the final image, you can adjust after the fact, sitting at your computer, instead of before the image is captured.