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A domain transfer is a process in which a domain is moved from one domain registrar to another registrar. There are many reasons why owners of a domain may choose to transfer their domain to another registrar: price, quality of customer service, and ease of use (just to name a few).
NOTE: If you are looking to move your domain from one Dynadot account to another, this is called a change ownership request, not a domain transfer. Change ownership requests are free and can be done from within your Dynadot account.
For more info about domain transfers, check out the following help files:
You can get even more info by visiting the domain transfers section of our help files.