SCORM stands for 'Sharable Content Object Reference Model'. It is a collection of technical standards and specifications developed for eLearning software products. SCORM defines a specific way of constructing online learning content so that it works well with other SCORM conformant systems. In short, it enables interoperability, accessibility and reusability of web-based learning content. 

Content can be created using HTML, JavaScript, SWF files and (for non-technical users) SCORM authoring software. If you design eLearning content using tools such as Adobe Captivate or Camtasia and you want to upload that content to an LMS such as Moodle, SCORM enables you to do that. Content can be created in an eLearning authoring tool such as those mentioned above, and then published by the tool in a SCORM conformant way. When published to SCORM, it just looks like a Zip file to the user. However, the Zip package contains all the files needed to make that eLearning content run and because it has been packaged up in line with SCORM standards, it is ready to be uploaded in to any SCORM-compliant LMS and then delivered out to learners.

For further information, follow this link: SCORM Explained.