I think modular is the correct term; to give a basic example if I was to create an encryption application which you could type in like notepad, and then save encrypted, however under the save menu there are options to save for the encryption methods that you have plugins for like AES, Blowfish etc, and also allow new methods to be coded into a plugin and distributed without having to recompile the main application.
I've found a couple of explanations online but I'm mostly struggling to get my head around how you would get new options to appear under the save menu that originally didn't exist (this maybe more a Windows application question), if you get what I mean.
Seeing as modular development seems to be very platform specific I'll stick with Windows examples for now and hopefully try and scope out after that.