Udhiyah (Qurbani in Urdu) means offering or sacrifice. It is an annual ritual sacrifice that the majority of scholars say is “strongly recommended.” Hanafis hold it as “obligatory,” for anyone who can afford it during the days of Eid Al-Adha during the Islamic month of Dhu’l-Hijjah. The sacrifice is a livestock animal: camel, cow, sheep, or goat. The meat is then typically divided into thirds. It can be distributed to family, friends, and the poor (both Muslims and non-Muslims).
This is to honor the tradition of Prophet Abraham (on him be peace). He was ready to sacrifice his son Ishmael (on him be peace) when God commanded him.