Diffracting light from a camera’s flash out into many directions into the general direction of the subject to soften the effects of the flash. This diffusing of light is acheived by enlarging the size of the light source (at the expense of diminishing the intensity of the light) through the use of a flash diffuser.
Most external and some internal flashes can be covered with a diffuser to soften the light.
Nearly all cameras have some sort of flash built in or have a mount, called a hotshoe, that allows the user to mount an external flash. When a flash is used, the light hits the subject from the same perspective as the camera itself. This results in a relatively “flat” looking image...the entire subject is generally illuminated evenly with minimal shading.
By dispersing the light from the flash before it reaches the subject, the apparent size of the light source is increased. This results in a subject that is lit with more subtle lighting and produces different shading effects. Light intensity and shadows can be influenced by using smaller or larger diffusers.
Before purchasing a diffuser, experiment by covering your flash with a piece of bowed-out paper, the bottom half of a white plastic milk jug, or similar scraps. The effects can be nearly indistiguishable from those gained from an expensive ready-made diffuser.