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White matter is located at the base of the brain between the cerebellum and the brainstem. It is made of long nerve fibers called axons. The axons are insulated by myelin, sheaths of fat that give the region the white color for which it is named. The myelin helps speed up the transmission of signals along the axons.
The part of your brain where the nerve cell bodies themselves are is the grey matter.. Think of your brain as a bunch of networked computers, with the computers as the cell bodies and the wires connecting them as the axons, and that's a decent enough analogy. Different processes can cause changes in the white matter.