It is a Gigabit Interface Converter, converts serial electric signals to serial optical signals and visa versa. Allows you to interface a fiber optic sustem with an Ethernet system. In switches they are often used for trunks, but can also be used to directly interface with host systems, etc.
You can also get copper modules which plug into a GBIC port. Basically it's a gigabit ethernet with no physical adapter. That lets you choose between SX, LX or TX.