Just add to Craig's good comments, let me give an example here, let's say you have two NICs, one (NIC1) is at address 192.168.2.1/24, and the other (NIC2) is 192.168.3.1/24. If forwarding is enabled, and a packet comes in on NIC1 with a "destination address" of 192.168.3.9, your divices will resend that packet out of the NIC2. If forwarding is not enabled, this packet will be discarded.
Regards
Daniel