The term "ray tracing" sounds like jargon because it is jargon, but what it actually does is relatively simple.
"It essentially simulates the path of light traveling from a light source in a game, like a light bulb, fire, or the sun, more accurately than conventional video game lighting," my colleague Antonio Villas-Boas wrote last year. "The result is more realistic lighting, reflections, and shadows in a video game."
Simply speaking, ray tracing makes representations of light in games — whether we're talking about shadows, reflections, light sourcing, or whatever else — look more accurate.