Since 5 people here have already explained holograms better than I can, I'll just add some extra info which I hope may be helpful.
HoloGRAMS require the use of lasers to produce them, and sometimes also to view them.
HologGRAPHS on the other hand, only need normal visible light, and can be made with just mirrors. Typically, two parabolic mirrors – similar to what you find in car headlights – will be cupped together to form a spherical container.
Inside, at the bottom and on the centre, the object to be viewed will be placed. On the centre of the top mirror, a sufficiently large hole will be cut out, through which to view the object.
Then, due to the properties of parabolas and the remarkable and handy way in which parabolic mirrors reflect light, when you look into that hole at the top, it appears as though the object is actually there, at the hole, instead of deep down inside where it really is.
Strathclyde University had one such display in the 5th floor entrance to their Physics HQ in the John Anderson building. You would see a can of Irn Bru, but when you reached in to grasp it, it would vanish as your hand “moved through” it!
I’ve since also seen many toys based on this principle, on sale in shops.
As for HOLOGRAMS – the best example I know of a practical use of this is in the Head-Up Displays (HUDs) of some fighter planes. It has the advantage of allowing the pilot to both view any potential adversary – and the world in general – and also the instrumental info from his craft, without having to waste precious time moving his eyes between the two and having to refocus his eyes.
I believe this application is now being adapted by some car manufacturers too.
Otherwise, this story is misleading! Just like the other advertised feature "Tell us what you really think about Yahoo", when it's not about that at all! It's all typical Yahoo! sensationalism.
This is just about some fancy new 3D goggle-type apparatus, like Virtual Reality, and not the same as R2D2-style holograms at all!
Yahoo! are just perpetuating a myth, also perpetuated by all those "procedural police dramas" from the US, like CSI, Bones, NCIS, etc., where the forensic folk sometimes use technology which doesn't actually exist yet!