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Keyword Density.

Keyword density is a combination of the number of times a keyword or a keyword phrase is found on a web page. The more times the keyword appears in relation to the total number of on page words, the greater the overall keyword density. The more times that other words appear, the lower the proportion of keywords, resulting in a lighter keyword density. For more details visit http://webdesign.about.com/od/seo/f/keyword_density.htm
Keyword density is about using the keywords in the content. How many times you repeat your keywords in the content , meta and keywords. In my opinion, keyword density should be 2 to 3 % for the page.