The distributor is basically a very precise spinner. As it spins, it distributes the sparks to the individual spark plugs at exactly the right time. It distributes the sparks by taking the powerful spark that came in via the coil wire and sending it through a spinning electrical contact known as the rotor. The rotor spins because it's connected directly to the shaft of the distributor. As the rotor spins, it makes contact with a number of points (4, 6, 8 or 12 depending on how many cylinders your engine has) and sends the spark through that point to the plug wire on the other end. Modern distributors have electronic assistance that can do things like alter the ignition timing.


