I'm not exactly an engineer, but I've been flying multis of various sizes for a reasonable amount of time. I'm sure there's amazing expertise in these forums, so those of you, feel free to join in this interesting question. That said, here's my stab at it.
As it relates to multirotors, telemetry would be relevant information about your flight. Information such as altitude, power consumption, your flight path, temperature, and much more. Either in real-time, or recorded, telemetry measures and keeps track of many layers of information about what you multirotor is doing, it's flight systems and it's surroundings. Real time telemetry data can be displayed on your radio transmitter screen (if you have one of those radios) , or on your FPV screen. Some telemetry data can be recorded and downloaded to specific software on your computer to give you a milisecond view of your flight over time. You can find out exactly at what time you took off, your rate of climb, and the moment you hit that tree, as a 2D graph. I believe there's telemetry data that show you what your fingers were doing at that time, because it was measured, recorded, and displayed for you to see. Telemetry. As a pilot, you take what's important to you, and in the best of cases, learn from your flights, and measure your progress. Hope this helps.