Cavity back is a term in golf club design used to describe a clubhead shape in which material and mass is moved from directly behind the club face and redistributed to the outer edges of the clubhead. This design results in a visible cavity when the back of the club is viewed (thus the name cavity back).
By distributing material (and mass) to the outer edges of the club head, designers are able to increase the club's MOI (Moment of Inertia). Irons that feature this kind of perimeter weighting reduce the tendency of the club to twist on off-center hits. This increased stability effectively creates a larger "sweet spot", and results in a more forgiving iron and tighter dispersion patterns on iron shots.