The theory of evolution is a
scientific theory (independently) proposed by Charles Darwin and Alfred Wallace in 1858. Darwin is largely credited with it, as he had been working on his theory for several years, after traveling around the world with
HMS Beagle.
Simply put; the theory proposes the
extant (and extinct) species of the world all evolved over time, and still is, by natural selection. The explanation for such changes are that when one individual gain a trait that increases it's chances of survival, it will more likely mate and have offspring who carry the favorable trait. The offspring will also reproduce more successfully, and so the trait will become dominant in a population after some amount of time.
The theory is supported by modern science, both in the
fossil record and even by observation.
Sadly, Darwin could not explain all that he observed. A monk called Gregor
Mendel had more or less discovered genes at about the same time, explaining how evolution works.
The theory is extensive, for more information surf the
grat internet (just avoid the creationalists who usually has not read much about it) or even read one of
Darwins books; especially "on the origins of species".