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"FUSE for OS X" allows you to extend OS X's native file handling capabilities via third-party file systems. It is a successor to MacFUSE, which has been used as a software building block by dozens of products, but is no longer being maintained.
As a user, installing the "FUSE for OS X" software package will let you use any third-party file system written atop "FUSE for OS X" or MacFUSE, if you choose to install the MacFUSE compatibility layer. As a developer, you can use the OSXFUSE SDK to write numerous types of new file systems as regular user space programs.