X10 uses the power lines that ultimately connect all the modules together (I.E. the wiring in your home) to send control signals back and forth.
You plug a controller in, which can be a little on/off pad, a radio remote control, a compatible aquarium controller, or a computer interface. It sends signals to the modules, which your pumps, heaters, whatever connect to. Each module gets an ID to be able to control it separately from other stuff.
I personally don't trust it for aquarium use. It's too easy for a stray signal to turn something off when it shouldn't be off, or, more likely, too easy for a signal sent by the controller to fail to address the unit. Because the communication is one way (there are two way systems, but I don't know of any aquarium controllers that support it), there is no way for the module to confirm back that it got the signal, so if it fails to say... turn off a heater... well... yeah.
At the same time, since there are commerical manufacturers out there who use X10 as part of their controller products, then maybe it's reasonably dependable in this application. I don't know. To learn up on it, look on X10's web site.