The term "toaster" refers to a self-contained software package (or "
appliance") that is easily distributable by electronic means, such as the
Freedom Toaster project, This use generally connotes
free software
Free software or libre software is computer software distributed under terms that allow users to run the software for any purpose as well as to study, change, and distribute it and any adapted versions. Free software is a matter of liberty, no ...
and is a term occasionally used in the open source software community."
Open Video Toaster website
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A toaster appliance is often made up of software components that were not originally packaged together. The new toaster package provides a co-ordinated packaging framework in which all the components can function together as a self-contained unit.
References
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Free software
Computing terminology