Plain English Meaning
To pull something back into the airplane after it is no longer needed sticking out, like the wheels or the flaps once you are climbing.
Full Definition
To raise or draw in a movable aircraft component, most commonly the landing gear or wing flaps, so that it stows into its housing in the airframe after takeoff.
Context Anchor
Seen during the initial climb after takeoff, when the pilot may retract landing gear or flaps at the proper time and speed.
Derivation
From Latin retrahere, meaning to draw back. The 're-' part means back, and 'trahere' means to pull. So to retract is literally to pull something back in.
Why Pilots Care
Reduces aerodynamic drag, allowing a faster and better after takeoff.