its looking at a template file, and replacing dummy values (the %CTITLE things) with actual values from a database and then showing the template.
for example, you have a file
<html>
<head>
<title>%TITLE</title>
</head>
<body>
Hello %NAME,
welcome to our site. you are on %PAGE
</body>
</html>
doing something like
$template = str_replace("%TITLE", "$pageTitle", $template);
$template = str_replace("%NAME", $SESSION['username'], $template);
$template = str_replace("%PAGE", $SERVER['PHP_SELF'], $template);
print $template;
would print out
<html>
<head>
<title>Some title from a variable</title>
</head>
<body>
Hello Person,
welcome to our site, you are on /index.php
</body>
</html>
hope that helps you a little bit.