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In general, a vocabulary is all of the words in a specific language. Your personal vocabulary is made up of all of the words you know how to use in a specific language and know how to use in the appropriate context.
Usually vocabulary starts to develop as people learn how to listen and speak as infants, but you may do activities that expand your available vocabulary at any point in your life - like learning a new language or going to school for a specific career.
In general, there are two major types of vocabulary that you might use, called active and passive. Active vocabulary consists of the words you use on a regular basis AND know how to use in the proper context. Passive vocabulary are the words you might recognize to hear or see but you do not use these words regularly OR do not have a clear understanding of their meaning.
There are four main categories of vocabulary that we use at any time. All of these types can be of different strengths or levels depending on the person.