Sequencing is usually done with midi recorders but can also be done with audio.
it's the process of taking sepreatly recorded parts and placing them in a certain order or sequence.
you might record a verse only once and a chorus once then a alternate version of each or a tag to go at the end.
then you would put them together by arranging them in the order you want to hear such as
play the recorded verse two times in a row
then the chorus three times
then a verse once
then the tag sixteen times
get the idea each part was only recorded once but you decide how many times they repeat.
some boards have built in / onboard sequencers or you can buy stand alone units to do the job.
if you need a full arrangement you set each instrument to a diff midi channel. 1-16 if you need more you can select port A for the first 16 midi channels and select port B for the next if your unit or seq prog allows
then you can use 32 or more sounds at once.
so sequncening is just what the name implies to put somthing in a certain order.
hope this helps