VLAN 1 is the management VLAN.
All switch ports are members of VLAN1.
It is configured in VTP server mode. STP is automatically enabled. All switch ports are assigned to VLAN1.
The Management IP address will be configured on the Default Management VLAN (vlan1). Make sure to do a "no shutdown" command on the VLAN as for it is placed into the shutdown state when first configured. Also for telnet you will need to configure the Virtual Terminal Lines just as a regular Cisco Router. If more functionality is needed other than Telnet more configuration maybe needed depending on what switch is being used.
ALSwitch(config)# interface vlan1 ALSwitch(config-if)# ip address 192.168.10.2 255.255.255.0
Usually Port1 VLAN1 is deafult Trunk Port
VLAN stands for Virtual LAN. It is called as such because you are essentially creating "virtual" networks on the same physical piece of hardware. Imagine a network switch with 20 ports. You could assign the first 5 to VLAN1, the next to VLAN2, and so on. You would end up with 4 segregated networks, but on the same physical switch. The virtual in VLAN is referring to the fact that there is nothing phsically separating the ports on the switch, it is done "virtually".