A Potentiometer is a variable resistor that has 3 terminals.
A Potentiometer normally has a knob, slider or screw that lets you adjust the resistance between the terminals.
There are 2 ways a Potentiometer can work.
The way a Potentiometer works is similar a car window wiper. There is a small metal piece attached to the screw/knob/slider of the Potentiometer. This metal piece is touching a small strip of metal. Combining the metal piece and the metal strip creates resistance in a circuit.