A computer appliance is a computer that comes with all the necessary hardware and software already installed. This means you don't have to do any installation or setup - you can just plug it in and start using it right away. It usually comes with a fixed set of functions, or “applications”, which can range from things like managing your email to running a web server. Think of it like having a toaster or microwave: you plug it in, push the buttons and it does the job.