It is a device which both makes your steering wheel's output,
"the pinion" connect with the "rack", a device which affects your
front wheels forward angle. It also controls the ratio of steering
wheel input to actual steering output.
High performance cars will have a relatively low ratio steering
ratio, meaning minor steering wheel input will dramatically affect
steering output while ordinary passenger vehicles will have higher
ratios requiring more steering wheel input to produce a similar
amount of vehicle steering.