dns = domain name system
all it does is convert a domain name (eg something.com) into an ip address so the domain can resolve to a server
name servers
usually 2 or more host entries that tells a domain what ip address(s) it must go to.
so when a domain is queried, a user goes to a dns server, the dns server contains information such as subdomains, name servers etc. it gets the name servers, sees the ip's and then tells the user that they need to go to this ipaddress.
something.com might go to 67.19.255.255 (this isnt a real ip)
you create a name server host record for that ip which might be ns1.something.com
you then tell your domain registrar to configure the domain to the nameserver
the dns servers update and then they know that any domains going to ns1.something.com need to be fowarded onto the ip address above.