Anchor text makes it easy to convey the content linked.
Anchor text is the clickable text that users see as a result of a link, and is placed with the anchor tag <a href="...></a>.
The text tells users and search engine something about the page you are linking to. Links on your page maybe internal (within your site) or external (to another website). In either instance the better your anchor text is the easier it is for the user to navigate and for search engines like Google to understand what the page your site is linking to is about.