Anchor text is also called link text and is the clickable text that forms a hyperlink. This is an important piece of the puzzle when working with search engine optimization (SEO) and link building. Usually the anchor text is blue and underlined because it is the default on the web, however it is possible to change the color and underlining using HTML code. The keywords in anchor text are one of the many signals that search engines use to determine the subject matter of a web page.
The anchor text can also be called the link label or the link title. You have to carefully choose the words that the anchor text should consist of as this can determine what ranking the page will get via search engines like Google, Yahoo and Bing. There are often links without anchor text on the web that go by the name naked URLs or URLs. Different browsers display anchor text in different ways and the correct application of anchor text can help the linked page rank / classify for these keywords in search engines.