'AltText', or Alternative Text, is a process of describing something non-textual. It assist visually impaired people who are typically making use of screen reading software.
The fediverse aims to be as inclusive as possible and strongly encourages everyone to make use of Alternative Text wherever possible.
Typically you will do this when uploading an image to a post – there will be an option to add a description.
The AltText could be:
Photograph of a dark blue steam locomotive leaving the station, pulling a red and cream coloured carriage. To the left, a red-brick old signal box, with steps leading up to a red entry door. The word 'Lakeside' on a sign on the slate roof.
The AltText could be:
Photo of a round, pink, multi petal flower opened fully with a red core surrounded by tiny yellow flowers. A blurred green background. A bumble bee in the centre.
Original images:
https://commons.wikimedia.org/wiki/File:Steam_Train_Departs_from_Lakeside_Station_-_geograph.org.uk_-_4002053.jpg https://commons.wikimedia.org/wiki/File:Zinnia_elegans_with_Bombus_01.JPG