Google’s AdSense Program is a directed advertising placement service. It uses keyword targeting and other factors to place ads on your blog and/or YouTube channel that will be of interest to your viewers and readers.
These banner ads are either text or image based, and they are specifically targeted at people who enjoy the kind of content that you provide. When someone visits your blog and clicks on an advertisement, you basically earn a commission from Google for providing the space for that advertisement.
The more people engaging with these ads on your blog, the more you earn. But, make sure to never encourage clicks or engagement with these advertisements in any sort of way as this is against AdSense TOS and will get your account flagged or banned.
That said, AdSense isn't the only way to make money through advertising and marketing on your blog for your YouTube channel. You can also make money through affiliate marketing and through direct advertising, as well.