It's not very well named, but basically it means that it drops 'weird' packets that don't conform to normal IP rules. IE it's not TCP, UDP, or a few other acronyms for standard packets.
Anything that successfully reached your router from the 'web' should be standard packets. Youtube videos, for example, use UDP packets if I remember right. They might of switched to TCP.
Some attacks use non-standard packets to do weird things, so dropping them is a good thing.