XOR, exclusive OR, is a logical function. Here is the truth table for Q = A XOR B:
  
  A|B|Q
  -+-+-
  0|0|0
  0|1|1
  1|0|1
  1|1|0

For more than two inputs, XOR returns 1 if and only if an odd number of its inputs are 1. This is required to maintain the associative property. Consider:
(1 xor 0) xor 0 => 1 xor 0 => 1
1 xor (0 xor 0) => 1 xor 0 => 1
(1 xor 1) xor 1 => 0 xor 1 => 1
1 xor (1 xor 1) => 1 xor 0 => 1
but:
(1 xor 0) xor 1 => 1 xor 1 => 0
1 xor (0 xor 1) => 1 xor 1 => 0

Exclusive OR is also sometimes abbreviated EOR.

See also other logic functions: AND, OR, NOT, NAND, NOR, NXOR.