An image file of an optical disk, such as a CD-ROM or DVD.

From Wikipedia: An ISO image (International Organization for Standardization) is an archive file (also known as a disc image) of an optical disc, composed of the data contents of every written sector of an optical disc, including the optical disc file system.

ISO image files often have a file extension of .iso. The name ISO is taken from the ISO 9660 file system used with CD-ROM media, but what is known as an ISO image might also contain a UDF (ISO/IEC 13346) file system or a DVD or Blu-ray Disc (BD) image.