A schematic shows connections in a circuit in a way that is clear and standardized. It is a way of communicating to other engineers exactly what components are involved in a circuit as well as how they are connected. A good schematic will show component names and values, and provide labels for sections or components to help communicate the intended purpose. Note how connections on wires (or "nets") are shown using dots and non-connections are shown without a dot.
In addition to reading this instructable it may be a good idea for you to read my other instructable "electronics components and what they do" to get a good understanding of what you are doing when building a project.
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