Shader Nodes are the primary way you can control the fundamental look and structure of your scene. Shader Nodes encompass everything from terrain shading and displacement to water to atmospherics, including clouds.
Literally, to change the position of something. In graphics terminology to displace a surface is to modify its geometric (3D) structure using reference data of some kind. For example, a grayscale image might be taken as input, with black areas indicating no displacement of the surface, and white indicating maximum displacement. In Terragen 2 displacement is used to create all terrain by taking heightfield or procedural data as input and using it to displace the normally flat sphere of the planet.