A channel is an entity in which you upload your videos. Creating several of them helps you to organize and separate your content.
For example, you could decide to have a channel to publish your piano concerts, and another channel in which you publish your videos talking about ecology.

Other users can decide to subscribe any channel they want, to be notified when you publish a new video.

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The channel name is a unique identifier of your channel on this and all the other instances. It's as unique as an email address, which makes it easy for other people to find it.
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Channel name cannot be the same than your account name. You can click on the first step to update your account name.