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This section assumes "blockchain" already means something to you. If you're totally new, the key problem solved by blockhain is the ability for distributed, disparate entities to all agree on a rivalrous state of affairs. For a more comprehensive introduction to blockchain, try starting [here]
LBRY uses a public, proof-of-work blockchain that is very similar to Bitcoin. The blockchain is the foundation of the protocol stack.
The most salient feature of the LBRY blockchain is the association of a string of characters (a "name") with a structured set of metadata. This name can be accessed as a LBRY URL, e.g. lbry://hellolbry
The LBRY blockchain stores names and metadata in a Merkle tree. This allows LBRY URLs to be trustfully resolved even without a full copy of the blockchain.
The metadata contains information about the content, such as the title, creator, price (if any), and a unique signature allowing the actual content to be fetched from the data network, the next level in the LBRY stack.