It is a portion of the Hard disk that cannot be used any more. If a part of the disk get bad sector which contains data then those data is to be recovered before use. When you format a disk, the OS will mark all the unusable sector as bad sector, however, this does not affect the overall performance of the disk as the damaged space is considered unusable.
Recently I saw an ad for Panasonic Toughbook notebook computers. I think it's a bad idea to "label" laptops as "tough". It gives the user a false sense of safety thinking they can treat their laptops badly with the expectation no negative effect can happen. Manufacturer's can claim how "tough" their laptops are all they want. But in the end some naive traveller thinks they can check their notebook at the airport and expect it to work after being tossed about in the cargo hold. Good luck with that.
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