There are several definitions which can be found online, however I am going to paraphrase all of them and say that it refers to the emotional development of a character who becomes romantically attached to his/ her love interest in a way which some describe as psychotic.
It is a state where he/she exhibits her love in an exaggerated form (examples from wikipedia: kidnapping crushes, poisoning food that is to be eaten by a romantic rival, or forcing the romantic love interest to commit a double suicide (shinjuu 心中)).
It is basically someone who would do extreme things due to his/ her lovesickness.

What does yandere mean?? (=・ω・=)