Adding tags, descriptive information, to the audio file.
Typical tags are artist, song title, album title, track, cover art, composer, release year, etc.
By doing so you make the file self-documenting.
If you transfer the file to another computer (PC, MP3 player, etc.), the player software reads the tags and present them in the interface.
More about tagging.
Tagging is a matter of standards.
Only if there is a standard, media players can be programmed to adhere to this standard.
In case of MP3 it is ID3.
Many believe that it is not possible to tag WAV.
That is not true but in practice support for tagging WAV is poor.
MP3Tag - tags in the tag panel