It means your code used an object reference variable that was set to null (i.e. it did not reference an actual object instance).
To prevent the error, objects that could be null should be tested for null before being used.
if (myvar != null)
{
// Go ahead and use myvar
myvar.property = ...
}
else
{
// Whoops! myvar is null and cannot be used without first
// assigning it to an instance reference to it
// Attempting to use myvar here will result in NullReferenceException
}