Stat
Stats (statistics) are the 6 primary attributes shared by every character, as well as Luck:
Strength Dexterity Constitution Magic Willpower Cunning Luck
You are given 3 points to distribute amongst the six attributes per level, though you may raise them in other ways too, such as quest rewards. Most talents and many runes and infusions have a modifier attached to them that corresponds to one of these stats. As the stat rises, so does the effectiveness of the talent or item.
Many talents require a certain attribute level to be able to learn them. Also, a lot of equipment requires a certain stat level to be worn.
Physical combat damage is partially determined by these attributes as well (depending on the weapon(s) being used). Look for the "Uses stats:" line on the weapon to see which stats govern its effectiveness.