It enables the changing of data in a cell so that something new can be put in, or what is there can be changed. Pressing F2 activates Edit mode, putting the cursor in so that changes can be made.
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It is when you are entering or changing something in a cell on the spreadsheet. When you are doing that you are editing, so you are in Edit mode. You will see this indicated in the status bar at the bottom of the screen.
To edit a formula, put the cursor onto the cell and the formula will appear in the formula bar. Click up there to edit it. Using the keyboard, you can start editing by pressing the F2 key.
To get into the Visual Basic editor press Alt and F11 together. Alt and Shift and F11 will bring you into the script editor. Both of these can also be accessed by going into the Tools menu and then the Macro menu.