johnthephoneguy is only vaguely correct, at best.
I would suggest you review the Wikipedia RAID entry:
That said, RAID is a *R*edundant *A*rray of *I*nexpensive *D*isks. There are several different kinds of RAID - the three most common are RAID 0 (which is NOT really a RAID), RAID 1 (sometimes called "mirroring") and RAID 5.
RAID 0 can make things faster as it combines two or more drives so they appear to be one larger drive - it's faster because there are more heads ("eyes") looking over the data when you ask for it. If any one of the disks in a RAID 0 fails, you lose EVERYTHING ON ALL DISKS. For this reason, I do not recommend it EXCEPT when you are doing video editing and things like that - then you would use a RAID 0 disk as a workspace only, NEVER storing data there that didn't have a backup elsewhere.
RAID 1 uses TWO drives (typically of identical sizes) and writes the same information to both drives. So if you have TWO 100GB hard drives, Windows will only see ONE drive. But if either drive fails, the other drive has all your data and keeps running as if nothing happened.
RAID 5 uses 3 or more disks and combines them similar to a RAID 0, except that one disk worth of space is used for Parity. This parity allows for ANY of the 3 or more disks in the RAID set to fail and yet the data is STILL there and accessible, though the performance will decrease as the system must now recreate the lost disk's data from parity when you try to access it. Other than speed issues, this is transparent. If a RAID 5 loses MORE than one disk at any given time, then ALL data is lost on all disks (just like a RAID 0).
RAID is NOT a backup. RAID cannot protect you from losing data due to fire, accidental deletion, or file system corruption.