This and it can also help promote coralline algae growth (good algae). Effectively it takes the water from your tank in and through a bubbling action separates the protein waste (from food and other sources) and dumps it into a collection cup which you periodically dump and clean out. This keeps said waste from building up in your tank.
Here is a vid with an HOB skimmer in action:
And one in action in a sump config (at about the 4:45 mark):