Bleed
Bleed is the extra margin of artwork that runs past the trim edge of a printed piece, usually about 3 mm, so no white edge shows when the paper is cut. Backgrounds and images that reach the edge need it.
In practice
What it means when you are the one making the decision.
Keep important text and logos inside a safe area, a few millimetres in from the trim, so the cut cannot clip them. Bleed and safe area are the two margins every print file needs.
Printers state their own bleed and file requirements, so ask before you finish the artwork and request a proof before the full run.
Example
A menu card with a coloured background is made with 3 mm of colour beyond the trim line, and its text sits 6 mm inside it.
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