Well, there're some good answers here but they are too verbose so I feel the simplest thing is show three pictures and one statement:
In the App Registration, we have "Application Objects":

To understand what you're seeing in the Enterprise Applications blade are "Service Principals":

And this is the relationship between the two in a multi-tenant example:
Adatum - The tenant used by the company that developed the HR app
Contoso - The tenant used by the Contoso organization, which is a consumer of the HR app
Fabrikam - The tenant used by the Fabrikam organization, which also consumes the HR app


And with that out of the way, we can understand this statement:
Similar to a class in object-oriented programming, the application
object has some static properties that are applied to all the created
service principals (or application instances).
The application object is the global representation of your
application for use across all tenants, and the service principal is
the local representation for use in a specific tenant. The application
object serves as the template from which common and default properties
are derived for use in creating corresponding service principal
objects.
Also said in a different way:
Application objects - Although there are exceptions, application
objects can be considered the definition of an application.
Service principals - Can be considered an instance of an application. Service
principals generally reference an application object, and one
application object can be referenced by multiple service principals
across directories.
Reference: https://learn.microsoft.com/en-us/azure/active-directory/develop/app-objects-and-service-principals