Introduction
Laymen explanation
Technical explanation
Server Name Indication (SNI) is an extension to the TLS computer networking protocol[1] by which a client indicates which hostname it is attempting to connect to at the start of the handshaking process. This allows a server to present multiple certificates on the same IP address and TCP port number and hence allows multiple secure (HTTPS) websites (or any other service over TLS) to be served by the same IP address without requiring all those sites to use the same certificate.
Reference
https://en.wikipedia.org/wiki/Server_Name_Indication
https://docs.citrix.com/en-us/netscaler/12/ssl/config-ssloffloading/support_for_sni_on_backend_service.html