A token is a type of digital key. It is used to log in securely to a system or an app. A token can be a small device, a smartphone app or a special code, for example. One common type of token is a one-time numeric code that is only valid for a short period of time. In addition to the password, these codes are used to confirm that you are really authorized to log in.
You can think of it like the door of a safe. The safe has a combination lock and a key. For the combination lock, you need to know the corresponding combination, such as a password. The token, i.e. the second factor, is a physical key in this case, i.e. something you must have. You can only open the safe door if you have both.
This is also how it works digitally: you log in as usual with your username and password and confirm the login with a YubiKey or a TOTP authenticator app installed on your mobile device. This makes your access much more secure.