Turbo explained

This automotive performance part has many names: turbosupercharger, turbocharger, turbocompressor or just turbo. A turbo is a specific type of supercharger.

A turbo is a centrifugal compressor powered by a turbine that's driven by the engine's exhaust gases. It's used to enhance an engine's efficiency. It does so by increasing the mass of air that enters the engine. Actually, it rams a greater mass of air down the engine's throat (aka forced induction) resulting in greater performance.

Another kind of turbo is the "geared supercharger" and is mechanically driven by the engine. Superchargers used in drag racing are belt driven. Finally, twinchargers use a combination of supercharger and turbocharger.

History:
The concept of forced induction was patented in the late 19th century by Gottlieb Daimler (of Daimler  Benz AG). His technique used a gear driven pump to force air into an engine in 1885. However, it was the Swiss engineer Alfred Buchi who in 1905 patented the system that we still use today; a compressor (turbo) driven by exhaust gasses to force air into an engine.

The video below explains in great detail how a turbo works.