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OTTB stands for Off the Track Thoroughbred. The OT stands for of the track and the TB stands for Thoroughbred and TB is a short form of Thoroughbred. This means that the horse was previously a racing Thoroughbred however their racing career is over.
It simply means that at one point in its life, the horse was raced or went into race training and it's a thoroughbred. There's also an OTSTB, same thing but a standardbred, and OTQH, same thing but a quarter horse. It applies to horses at all levels of training no matter how long it's been since the horse was raced.