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So what is Linux, anyway?
In the simplest terms, Linux is an operating system. It was created in October 1991 by a University of Helsinki student named Linus Torvalds (Linux stands for Linus's UNIX). Linux itself is actually just the kernel; it implements multitasking and multiuser functionality, manages hardware, allocates memory, and enables applications to run.
The average user will never be interested enough in any operating system to want to know about things like kernel internals. Only the truly dedicated -- those who have no personal lives, or those who are being paid to do this kind of work -- are going to want to explore these intricacies.