Fuzzy logic is a form of multi-valued logic derived from fuzzy set theory to deal with reasoning that is robust and approximate rather than brittle and exact. In contrast with "crisp logic", where binary sets have two-valued logic, fuzzy logic variables may have a truth value that ranges in degree between 0 and 1.
Fuzzy logic is an approach to computing based on "degrees of truth" rather than the usual "true or false" (1 or 0) Boolean logic on which the modern computer is based. The idea of fuzzy logic was first advanced by Dr. Lotfi Zadeh of the University of California at Berkeley in the 1960s. Dr. Zadeh was working on the problem of computer understanding of natural language. Natural language (like most other activities in life and indeed the universe) is not easily translated into the absolute terms of 0 and 1. (Whether everything is ultimately describable in binary terms is a philosophical question worth pursuing, but in practice much data we might want to feed a computer is in some state in between and so, frequently, are the results of computing.)
Fuzzy logic includes 0 and 1 as extreme cases of truth (or "the state of matters" or "fact") but also includes the various states of truth in between so that, for example, the result of a comparison between two things could be not "tall" or "short" but ".38 of tallness."