How's this for an explantation to the layman. One way computers represent numbers is by counting discrete units. These are digital computers. For whole numbers, those without a fractional part, modern digital computers count powers of two: 1, 2, 4, 8. ,,, Place value, binary digits, blah , blah, blah. For fractions, digital computers count inverse powers of two: 1/2, 1/4, 1/8, ... The problem is that many numbers can't be represented by a sum of a finite number of those inverse powers. Using more place values (more bits) will increase the precision of the representation of those 'problem' numbers, but never get it exactly because it only has a limited number of bits. Some numbers can't be represented with an infinite number of bits.
Snooze...
OK, you want to measure the volume of water in a container, and you only have 3 measuring cups: full cup, half cup, and quarter cup. After counting the last full cup, let's say there is one third of a cup remaining. Yet you can't measure that because it doesn't exactly fill any combination of available cups. It doesn't fill the half cup, and the overflow from the quarter cup is too small to fill anything. So you have an error - the difference between 1/3 and 1/4. This error is compounded when you combine it with errors from other measurements.