Latent Semantic Indexing (LSI) is a part of the Google algorithm. LSI looks for synonyms related to the title of your page. For example, if the title of your page was “Classic Cars”,
the search engine would expect to find words relating to that subject in the content of the page as well, i.e. “collectors”, “automobile”, “Bentley”, “Austin” and “car auctions”.
Theres an article on wikipedia that should be able to explain it to you. I have also noticed a trend recently with people calling what I would call secondary keywords LSI terms.
LSI stands for Latent Semantic Indexing. This technique is established to obtain the data by relating the word to its closest counterparts or to its similar context. For example, if you are searching something with a keyword “CAR” it will show all the related things like classic cars, car auctions, Bentley car, car race etc.
LSI keywords are keywords that are related to your main keywords
For example, if your targeting keyword is "dog food," then this word is just Google and keyword scrolled down after the last search result is the revised keyword LSI keywords.
Toss 2 to 3 keywords and put them in your content helps it get place in the Google index
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