I've seen this term used to describe many histology images- sooo what exactly is it? Is it just lymphocytes moving into a specific area and why is it significant?
yeah. pretty much just lymphocytes within the tissue itself. An infiltrate can be functionally contrasted with an abcess which wouldn't have any normal tissue in it. It's just a snooty way of saying "Oi! There's dem little blue buggers all up in 'ere!"
It can mean infection, but you will see it more often with regards to organ rejection and autoimmunity.