I refugium is simply a safe place for things to reproduce like macro algea or pods connected to your tank. A lot of people around use rubbermaid containers or old tanks. You can either put the refugium above your tank and pump water up to it then let gravity bring the water back to your tank or put it below your tank and use a pumps to pump water in and out of it.
There are many links are this board about them if you do a search a refugiums on this board you'll find a wealth of info.