From the newscientist article which I can no longer access (but stole from page that was linking to it as well^^). There really is a lot about this topic that can't really be accurately described in plain language to those without science degrees.
"When light bounces off holograms, it recreates the appearance of a 3D image. In the 1990s physicists Leonard Susskind and Nobel prizewinner Gerard 't Hooft suggested that the same principle might apply to the universe as a whole. Our everyday experience might itself be a holographic projection of physical processes that take place on a distant, 2D surface."
“If space-time is a grainy hologram, then you can think of the universe as a sphere whose outer surface is papered in Planck length-sized squares, each containing one bit of information. The holographic principle says that the amount of information papering the outside must match the number of bits contained inside the volume of the universe.”
“Since the volume of the spherical universe is much bigger than its outer surface, how could this be true? Hogan realised that in order to have the same number of bits inside the universe as on the boundary, the world inside must be made up of grains bigger than the Planck length. Or, to put it another way, a holographic universe is blurry.”