Link juice is informal SEO slang for the ranking authority a hyperlink passes from one page to another. When a trusted site links to yours, some of its credibility flows through that link, giving the destination page a better chance to rank. The idea traces back to Google's original PageRank model.
Not every link carries the same weight. The main factors:
Authority doesn't only arrive from outside — it flows internally too. Say your homepage earns most of your backlinks and therefore holds the most authority. A single internal link from that homepage to a new service page passes a share of that strength downward. Sites that link deliberately from strong pages to priority pages spread juice where it converts, instead of letting it pool on the homepage.
A quick before/after: a product page buried four clicks deep with no internal links struggled to rank; after adding contextual links to it from three high-authority blog posts, it climbed into the top ten for its main term within weeks. Distributing authority like this is a core aim of link building and internal linking. See also link popularity.