DTD is short for document type definition. The DTD states what tags and attributes are used to describe content in an SGML, XML or HTML document, where each tag is allowed, and which tags can appear within other tags.
Example of Document Type Definition
For example, in a DTD one could say that LIST tags can contain ITEM tags, but ITEM tags cannot contain LIST tags. In some editors, when authors are inputting information, they can place tags only where the DTD allows. This ensures that all the documentation is formatted the same way. Applications will use a document’s DTD to properly read and display a document’s contents. Changes in the format of the document can be easily made by modifying the DTD.
(Thanks to technical writer Ryan Mauldin for help in updating this definition.)