"as set" aliases the concatenated information. So I'm saying:
SELECT field1 and field2 from the database.
CONCATenate field1, field2, and "|" to make a string
AS set.
it's similar to saying:
$set = $field1.'|'.$field2
AS is basically a keyword meaning to alias the item before (table, column, string) as the keyword following "as". So in the loop of the row, you can reference the string as either $row[0] or $row['set'].