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Jason Anders
Treehouse Moderator 145,860 PointsThe short answer...
Tracebacks are analytics that show where your site/post is being linked to--either externally on the web or internally on your site.
For example, if myblog.com likes one of you posts and links to it in their post, that will show as a Traceback and show you that myblog.com has a link to your site/post on their site/post.
I have also heard them referred to as Link-backs or Back-links.
The more you have, the stronger your SEO will be too. So, they are generally a good thing.
:)