Smart TVs allow you to access to streaming video services like Amazon Instant Video, Netflix, and Hulu on your TV. These internet connected TVs offer more computing ability and connectivity than a traditional basic television set. Smart TVs will often let you access to non video services such as Twitter, or do things like check the weather and news without needing a computer.
It is just a regular TV plus the capability to access internet, of cource you must have internet service to enable this "smart" feature.