Burn outs are kind of like peeling out but are always deliberate and you don't move any where. You burn out by popping the clutch and holding in the brake. The force exerted on the wheels is greater then the force exerted by the brakes and wheels start moving, the brakes on the front wheels will prevent the car or truck from moving. At this point if enough gas was given and assuming the vehicle has enough power the wheels will start spinning leaving black rubber marks on the road and smoke in the air. At some point you should let off the brake and accelerate out of there. This is also known laying down some rubber, lighting up the tires, and leaving a blackie.
As a punk teenager I think it's pretty cool. Seems to piss off cops and parents for some reason. Admittly it's pretty rough on the vehicle in question.