Promoting the growth of seedlings by removing extraneous seedlings.
When planting seeds, they are typically planted very close together when compared to their ideal adult plant spacing. This is because many will not grow, some seeds are very fine (like dust), and the space required would be prohibitive.
After the seeds germinate, seedlings will often be too close together. This restricts the growth of the seedlings as they compete for resources. The process of thinning is the removal of these seedlings so that the surviving seedlings have more space and can grow unheeded. Thinned seedlings are discarded.
Although thinning is usually performed to seedlings, it can be performed with more 'adolescent' plants. By this point, plants can often be safely moved - increasing space for all the plants.