One of Howard Gardner's "multiple intelligences", Bodily or Kinesthetic intelligence has to do with the ability to be aware of ones body, make things, manipulate objects and move. It is important to encourage kid's kinesthetic intelligence because it helps them to be more confident, creative and to interact with the physical world around them.
Some children have a dominant kinesthetic learning style. This just means that they learn any concept better when they have the opportunity to build something, act something out or play a game with movement or activity. These are the kids who would prefer to build something (or often take it apart) to learn how it works, how it's made or how to fix it.