A Linux distribution is a collection of software applications built on top of the Linux kernel and operating system by some vendors and users. There are many variations between distributions, each strives to provide a unique user experience. Such distributions (often called distros for short) consist of a large collection of software applications such as word processors, spreadsheets, media players and database applications.
The operating system will consist of the Linux kernel and, usually, a set of libraries and utilities from the GNU project, with graphics support from the X Window System. Distributions are optimized for size may not contain X, and tend to use more compact alternatives to the GNU utilities. There are currently over 600 Linux distributions. Over 300 of those are in active development, constantly being revised and improved.
Because most of the kernel and supporting packages are free and open source software, Linux distributions have taken a wide variety of forms, from fully featured desktop and server operating systems to minimal environments, typically for use in embedded systems, or for booting from a floppy disk. Aside from certain custom software (such as installers and configuration tools), a distribution is most simply described as a particular classification of applications installed on top of a set of libraries bound with a version of the kernel.
Top 5 popular distros
Ubuntu
A popular desktop and server distribution derived from Debian, maintained by Canonical Ltd.
Fedora
A community distribution sponsored by Red Hat
Linux Mint
A distribution based on and compatible with Ubuntu. Mostly famous for it intuitive interface.
openSUSE
A community distribution mainly sponsored by Novell.
Debian
A non-commercial distribution maintained by a volunteer developer community with a strong commitment to free software principles. (predecessor of ubuntu)
Some Other distros
CentOS
A distribution derived from the same sources used by Red Hat, maintained by a dedicated volunteer community of developers with both 100% Red Hat-compatible versions people mostly use it for hosting.
Gentoo
A distribution targeted at power users, known for its FreeBSD Ports-like automated system for compiling applications from source code
Knoppix
The first Live CD distribution to run completely from removable media without installation to a hard disk (derived from Debian)
Mandriva
A Red Hat derivative popular in France and Brazil, today maintained by the French company of the same name. (successor of Mandrake)
PCLinuxOS
A derivative of Mandriva, grew from a group of packages into a community-spawned desktop distribution. Most user-friendly Linux distribution specially for windows migrants.
Red Hat Enterprise Linux
Derivative of Fedora, maintained and commercially supported by Red Hat. mostly used for enterprise servers.
Sabayon
Gentoo Based Distribution, aiming at working Out of the box.
MEPIS
A Debian-based distribution intended for easy desktop use and strong support.
Puppy Linux
One of the smallest distribution. Puppy Linux is an ultra-small version of Linux to support variety of hardware
FreeBSD
An indirect descendant of AT&T UNIX via the Berkeley Software Distribution.
Slackware
One of the first Linux distributions, founded in 1993, and since then actively maintained by Patrick J. Volkerding.
ArchLinux
A distribution based on the KISS principle with a rolling release system, mainly focused on the low minimum system requirements.
You can get more information on distributions and their statistics at DistroWatch. It provides news, popularity rankings, and other general information contains information on several hundred distributions