what they said above. very basically, they eliminate and filter out one vector of light. usually horizontal right? anyway, if you want to see for yourself, take two polarized sunglasses and put one behind another. turn one vertical and one horizontally. the lenses will not allow any light to pass through, so you will just see black. once ou rotate them the same way again, the light will come through.
they help a lot in sports, like tennis and especially fishing. you can see the fish swimming sometimes because the glare is eliminated.