Compiling turns what is called "source code" into an actual executable program.
For instance:
#include <iostream.h>
main()
{
int a, b;
cout << "Enter a -> ";
cin >> a;
cout<< "Enter b -> ";
cin >> b;
cout<< "a + b = " << a + b;
return(0);
}
Compiled would turn that into a program that asked for 2 numbers and displayed the total of a + b.