by Guillermo Madero S..
Hi Fallon,
It just means that you can unpack the contents of the Moodle package and then:
1. Move all the content from the unpacked moodle directory into your server document root directory; Do this if you want people to access you Moodle installation by just going into yoursite.com and if you do not have any other application already running there (e.g. WordPress).
/some/server/directories/public_html/index.php
2. Move the unpacked moodle directory (with all its contents) into your server document root directory. Do this if you want people to access your Moodle installation by going to yoursite.com/moodle.
/some/server/directories/public_html/moodle/index.php
In both examples, "public_html" is the server root directory.