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The VIX explained: Few really know what the Volatility Index is or how it is calculated. Here's are two brief explanations ... the first is a technical explanation, and the second is a description that investors can easily understand.

First, a brief technical explanation ... The Volatility Index (or VIX) is a weighted measure of theimplied volatility for real time $SPX put and call options. 

http://www.safehaven.com/article/22369/what-you-need-to-know-about-the-volatility-index-otherwise-referred-to-as-the-vix