Definition - What does Windows Terminal mean?
A Windows terminal is a dummy terminal that has the sole purpose of running Windows applications on it. It is linked to a Windows NT server via local network. The Windows Terminal does not do anything other than display data and take input from the user; the server handles all the threads and underlying processes. The Windows NT server uses software (such as WinFrame) to handle multiple tasks and support Windows terminals.
Techopedia explains Windows Terminal
Windows terminals may sometimes implement the use of a local edition (also known as line-at-a-time-mode) in which the terminal only sends the complete line to the NTS server. The user may write a whole set of commands on the text terminal (such as command line interface (CLI)) and then upon hitting the enter key, the command is sent to the machine. At that point the entire line is transmitted. This reduces the chances of error and misinterpreted commands. A Windows terminal usually accepts a set of escape commands to control features and settings such as color, brightness and cursor position.