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VPS is short for Virtual Private Server, which is sometimes also called a “slice”.
A VPS is called a slice as it is a chunk of a larger server which as been boxed off in some way in order to be used as a mini dedicated server.
Some resources are shared with other VPS instances on the same machine, but they are dedicated to this instance. For example, VPS may have dedicated RAM, storage and other elements.
A good VPS will be broadly indistinguishable from a dedicated server of similar specifications, though it should be noted that not all VPSes are good.
Way, way better than simple shared hosting, but not as good as a dedicated server which is truly independent of other sites and services.