Markdown is a text-to-HTML conversion tool for web writers. Markdown allows you to write using an easy-to-read, easy-to-write plain text format, then convert it to structurally valid XHTML (or HTML).

Thus, “Markdown” is two things: (1) a plain text formatting syntax; and (2) a software tool, written in Perl, that converts the plain text formatting to HTML. See the Syntax page for details pertaining to Markdown’s formatting syntax. You can try it out, right now, using the online Dingus.

This information is taken from Markdown website.

It's very easy to make some words bold and other words italic with Markdown.