Blue Ray is a new technology for storing data on discs and reading from them. The Blue-Ray players use a different wavelenght of light (a blue laser), to record and read from a disc. The new technology allows more data to be stored on an optical disc and for a faster transfer of data.
There is no direct relation to High Definition. It's the same as any other media format, it just allows a larger amount to be stored in the same area than is available on a traditional DVD. Standard definition data can still be stored on these discs. (ie. No matter what the box says "I Love Lucy" is not high-definition. It's an artificial enhancement.)
The larger storage capacity and faster data transer makes it ideal for High Definition movies, games, or PC users to use this new format.