A dangling reference is a reference to something that no longer exists at the referenced location (because it has been deallocated, for example). A simple case, as in your example, would be taking a reference to something on the stack that then goes out of scope. In particular, s goes out of scope at the end of the function, so the reference to it that gets returned from the function is dangling. Rust won't actually let you write such a function, because it checks that all references don't outlive the thing they reference.
I read the Wikipedia page about dangling references, and while it was not easy for me to understand initially, after reading it three times, I was able to comprehend it. Thank you very much.