what does pdo->prepare does in mysql code example

Example: pdo prepare

<?php
/* Execute a prepared statement by passing an array of values */
$sql = 'SELECT name, colour, calories
    FROM fruit
    WHERE calories < :calories AND colour = :colour';
$sth = $dbh->prepare($sql, array(PDO::ATTR_CURSOR => PDO::CURSOR_FWDONLY));
$sth->execute(array(':calories' => 150, ':colour' => 'red'));
$red = $sth->fetchAll();
$sth->execute(array(':calories' => 175, ':colour' => 'yellow'));
$yellow = $sth->fetchAll();
?>