A muster list is a list, written by the player, of all the units that make up the army they will be using during a game. A muster list should include the size of each unit (i.e., how many models it contains at the start of the battle), the equipment those models carry, and any optional upgrades that have been included, be they equipment, command models, magic items and so forth.
Most importantly, the muster list should include the total points value of each unit and of the army as a whole, thus ensuring that your army is within the agreed size! Players should share their muster lists with one another before deployment.
More Detail
Many players find it useful to include greater detail in their muster lists – model and weapon profiles, special rules, even spell and magic item descriptions. Including such detail is by no means necessary, but will reduce how much time is spent flicking through the pages of books during a game.