Link text is the visible text inside a link. This text tells users and Google something about the page you're linking to. Links on your page may be internal—pointing to other pages on your site—or external—leading to content on other sites. In either of these cases, the better your anchor text is, the easier it is for users to navigate and for Google to understand what the page you're linking to is about.
There are a lot of definitions of SEO (spelled Search engine optimisation in the UK, Australia and New Zealand, or search engine optimization in the United States and Canada) but organic SEO in 2019 is still mostly about getting free traffic from Google, the most popular search engine in the world (and almost the only game in town in the UK in 2019):
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