This is butter that has had the water, milk solids and salt removed. Butter browns and burns at lower temperatures than many other fats do, but by clarifying it you leave pure butter fat which is more stable and can be cooked at a higher temperature.
Clarified butter also stores better than ordinary butter, for about two months in the fridge. You can make it at home by gently heating butter (cut into smallish pieces) up to boiling point, then allowing it to separate, straining off the pure melted butter. Transfer it to a suitable storage jar, leave to cool then cover and refrigerate. Ghee is a form of clarified butter used in Indian cookery.