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A slug is a few words that describe a post or a page. Slugs are URL friendly version of the post title (which has been automatically generated by WordPress), but a slug can be anything you like. Slugs are meant to be used with permalinks as they help describe what the content at the URL is.

WordPress Codex – Glossary Definition of Slug

A permalink is a URL at which a resource or article will be permanently stored. Many pages driven by Content Management systems contain excerpts of content which is frequently rotated, making linking to bits of information within them a game of chance. Permalinks allow users to bookmark full articles at a URL they know will never change, and will always present the same content.

WordPress Codex – Glossary Definition of Permalink

About The Word

In WordPress the slug is the specific address of a post or Page after the domain name. By default, it is a number, the post or Page ID number. Through the use of pretty permalinks, WordPress generates a semantic structure for the slug, which by default is the year, month, date, and post title in readable numbers and words. This may be modified on self-hosted WordPress sites.

Example post permalink: http://wordpress.org/development/2006/06/wordpress-tips-editing-posts/

The slug for that post is “wordpress-tips-editing-posts“.

In general, most people have no need to modify the slug of a WordPress post or Page. WordPress generates it automatically when creating a post or Page, cleaning it up to remove extraneous code and adding hyphens between the words. The main reasons people edit the slug is to shorten the length of the URL if the title is long, and to put more emphasis on SEO keywords.

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A featured image represent the contents, mood, or theme of a post or page. Posts and pages can have a single featured image, which many themes and tools can use to enhance the presentation of your site.

With custom header images, you can display your own photo on your blog’s page headers. Featured images allow for even greater customization, giving you the option to display unique custom header images for specific posts and pages or set thumbnails for special features of your theme.
WordPress.com Support.

Example: A Featured Image is an image that is selected as the representative image for Post, Pages or Custom Posts.

About The Word

Featured images are used on some WordPress Themes to incorporate images into the site’s design. There are many ways this is done and the display and usage of featured images is set by the Theme. Read the Theme specifications and instructions for how to use it with your WordPress Theme.

Featured images are often displayed on the front page of the site above or next to the post title and post excerpt. Click the image or post title to access the image.

Some WordPress Themes use featured images along with a category called Featured or through the use of sticky posts to use featured images in sliders on the front page of the site. Others may use featured images to change the header image on a single post or Page pageview.

Social media sites, like Facebook, use images to highlight linked content. The usage of a featured image may be highlighted in social media posts depending upon how the WordPress Theme uses the featured images. If the featured image for the post is featured on the front page of the site and not the post itself, it will not appear in the social media stream. Only images on the post itself will appear. Check your Theme to see how this works.

To set the WordPress Featured Image feature on a WordPress site, edit a post. Look for Featured Image in the Post Edit Screen and click it to access the Media Manager to use an image already uploaded to the site or upload a new one.

This is a screen shot of the Media manager in the WP-Admin.