Definition

The distance away from a point in space, described by the X, Y, and Z axes. In SL, an offset of <10,0,0> means "10m away from the object in the positive direction of the object's X axis," while an offset of <-4,3,10> means "4m in the negative on the X axis, 3m in the positive on the Y, and 10 in the positive on the Z."

Can also be used in reference to textures, at which point the definition merely loses its Z axis and becomes how much the texture is shifted across the surface of the object in question.

Warning

Offsets are local to the object in question, which means if you rotate an object 180 degrees on all axes, what was once positive becomes negative, and so forth. Rotating the object only 90 degrees on a single axis could mean that that object's former Y axis relative to the simulator is now it's X or Z axis, depending on how you rotated the object.

To sum it up, if you set an offset to <10,0,0>, then rotate the object to any rotation possible, the offset will be 10m in the object's positive X axis direction, but globally may be somewhere between the Z and Y axes compared to the object, or something altogether else.

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Rotation