What is the Panorama feature on Digital Cameras?

My camera has this thing called the panorama feature. I dont understand how to use it or for that matter what its for. So if you know anything at all, please teach me. Tell me what it is, what its for, and how I can use it.
I have an Olympus Stylus 600 if this helps.
Thanks for your time.

For stitching together images

its basically if you want to have a panaromic shot u need a tripod as well as a paranomic based memory card , i reckon

The Panorama feature lets u take picrures of a place in a view such that u can feel that u were there. its the picture in a 2D oval format working like our eyes to see around.

You drag the image in the computer to look around.