I relay is an electro-magnetic switch.
Basically you have 4 wires.
1 from you 12V supply to the relay
1 from the relay to your fan/fuel pump/water pump
1 low voltage wire from a toggle switch
1 ground
Example: A electric fan
you have to get 12V to your fan to turn it on and off, but you would need a huge switch to handle the current draw. A relay allows you to use a small switch for low current/voltages.
Basically when you flip your switch the relay closes and connects the circuit from the 12V supply to the fan.....so you won't need the huge high amp switch.
They come in pretty handy. They are about 1" cube.