$searchstring is a word that is going to be found in all entries for searchtype that are displayed in your RESULTS such as:
hello$searchstring,
$searchstringgoodbye,
$searchstring,
hello$searchstringgoodbye.
Basically you are looking for a value in $searchtype that contains the word searchstring anywhere in it. The '%' is used to say that there can be anything before it (if placed before $searchstring) and there can be anything after it (if placed after $searchstring). Obviously placing it on both sides is saying anything before it or after, but it HAS to have the string $searchstring in it.