BHG, I need to make a webpage on this, but here goes...
It is a role playing game, or RPG. This game, like many others is a pen and paper game, meaning you play it with others around a table rather than on a computer. There are tons of rpgs out there, covering any type of fiction you can think of. There are fantasy games (Lord of the Rings type worlds), modern day epsionage, historical (wild west) scifi (star wars, etc). You name it. Most have their own unique rules system that governs how you interpret your characters actions.
In RPGs you make a character, which is a collection of ability scores (strength, intelligence, dexterity, etc) that are rated by a number. This gives you an idea how strong, smart, nimble your character is compared to an average person. You also have a certain number of skills and special abilities depending on the type of character you make. You character will usually have some sort of job or template, often called a character class, that helps determine the basic way that character interacts with his environment. In D&D there are fighters (warrior types), clerics (religious spell casters), wizards (arcane spell castes), bards (minstrels), paladins (holy warriors), rangers (outdoorsman), among others.
Since D&D is a game set in a fantasy setting, you can make your character human, elven, dwarven or several additional races. Each race has it's plusses and minuses in game terms.
You get a certain amount of gold to outfit your adventure with armor, weapons, gear, food, etc. for his or her adventure.
Normally, the Game Master (more about him later) will give you some idea of the background of his campaign (gaming world), so you can work out a background and reason for your character's desire to go adventuring and how he relates to the other characters (who are played by your friends around the table).
Typical games have 3-5 players, each with a character, and a game master. The game master creates (or purchases) a game world for the group to adventure in. He may have a big story plotted out, or may just let the characters wander on their own.
Each gaming session will focus on what is usually called an adventure. It's a smaller sub story that may last one or more sessions - focusing on a location (a dungeon, a city, a ruined castle, etc.) where the characters have a certain objective (rescue someone, unearth an artifact, defeat an enemy, etc).
How is all this accomplished? Through detailed rules found in the rulebook of the game you are playing. Actions are tested against the character's abilities, experience and skills, through rolls of the dice. Success and failure is determined with dice.
Actions have risks and rewards. Cause and effect. For example: to climb a cliff, you roll a climb skill check. The difficulty is determined by how smooth the climbing surface is and how strong the character is. If you fail, there is a possiblity of falling, and subsecquently getting damaged.
Most games have a system for health that involves a certain number of hit points or wounds. Once the character has exceeded his number of HP in damage, he runs the risk of dying. Depending on the type of game you play, there are ways to heal such as potions, first aid kits, etc.
Once an adventure is completed, the characters are given experience points which over time allows them to get better at what they do. Of course, the challege increases accordingly. With each new 'level' comes new abilities and increased power - but the opponents the characters face are also more powerful.