Plain English Meaning
NACO was the FAA office that used to make the official paper and digital charts pilots use to fly, including approach plates and en route charts. Its work is now done by another FAA group, but you'll still see the name NACO in older books and references.
Full Definition
The former FAA office responsible for producing and maintaining the official civil aeronautical charts and instrument flight procedure publications used in U.S. airspace, including sectional charts, terminal procedures (approach plates), and en route charts. Its charting functions were absorbed into the FAA's Aeronautical Information Services (AIS), and current FAA charts are now produced under that organization. The acronym NACO still appears in older handbooks, publications, and references.