In computer graphics, ambient occlusion is a shading and rendering technique used to calculate how exposed each point in a scene is to ambient lighting. For example, the interior of a tube is typically more occluded (and hence darker) than the exposed outer surfaces, and the deeper you go inside the tube, the more occluded (and darker) the lighting becomes. Ambient occlusion can be seen as an accessibility value that is calculated for each surface point. In scenes with open sky this is done by estimating the amount of visible sky for each point, while in indoor environments only objects within a certain radius are taken into account and the walls are assumed to be the origin of the ambient light. The result is a diffuse, non-directional shading effect that casts no clear shadows but that darkens enclosed and sheltered areas and can affect the rendered image's overall tone. It is often used as a post-processing effect.
source - wikipedia.org