I've been learning python for use in ArcGIS and some other non-web applications. However, now that I've taken on building a personal website I am interested in using it for web development (as it is the only scripting language I currently know).
I've noticed that there are a lot of these things called "frameworks", such as Django. From what I understand they are just a collection of packages to save you from re-inventing the wheel but I don't really know how they work.
Furthermore, I do not like GUIs, if I need a framework I would like to find one that could be used through a terminal, starts out simple and can be scaled for more complexity when I'm ready. Any advice or ideas on frameworks and why I would want to use one?
The Python web frameworks have nothing to do with GUIs, and can all be used via the terminal. 
The benefits of a framework, as you say, are all to do with making your life easier by supplying the components you need to build a website: the main ones are database interaction through an ORM, a templating system, and URL routing. On top of that, the big frameworks also included optional extras like user authentication, administration interface, and so on.
Personally I like Django, but your mileage may vary: I would say, though, that whatever you do with Python and the web will require some sort of framework, even if it's one of the absolute minimal ones like Flask which basically do just the routing part. There's simply no point in writing all this stuff from scratch when it's been done for you.
I'm learning python and am interested in using it for web-scripting. What frameworkes are out there and do I need one?