An exploded view is one in which parts are 'exploded' in such a manner as to clearly show how they should be assembled. Frequently, exploded views are used to show the relative positions of several parts on a shaft.
Exploded views are a valuable tool for communicating complicated assembly instructions.
Click on the file to download it. This picture shows a simple assembly. The white shaft has a green washer and a red bushing on it. As you can see, the red bushing has been moved, but is still on the shaft. The green washer has been moved off the shaft.