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It is the first person singular form of the verb "estar", the Spanish verb meaning "to be". So it means "I am".
'I am' in relation to temporary states, e.g. location, emotion

Estoy en el tren (I'm on the train)

Estoy muy feliz (I'm very happy) (at the moment)

By contrast 'soy' from the verb 'ser', also meaning 'to be', relates to more permanent or innate states, e.g.

Soy ingles - I am English

Soy feliz - I am happy (by nature, a happy person)

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12y ago

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