"Open source" describes software for which you can read the source.
Under copyright law in most jurisdictions, you are not allowed to copy or create a derived work from such source code unless granted permission by the copyright holder. The usual practice in today's software development world is to provide such open source under a license that grants the right to copy or create a derived work without further confirmation from the copyright holder, and some licenses grant those rights under limited conditions.
For example, the Expat and Apache licenses grant copy right under the condition that the copyright holder be waived from all liability. In other words, you can use their code but you can't hold them responsible for anything resulting from the use of that code.
A copyleft license such as the GPL adds additional restrictions: namely you must release all the code for your derived work under the same license. In additional, version 3 requires you to grant a license in any patent you hold that applies to the derived work.
Some open source licenses restrict you from using the code in a commercial application. The big-name licenses, like Expat, Apache, or GPL, have no such restriction (in fact, the GPL prevents you from adding such a restriction). Many games use open source licenses and have non-free restrictive licenses on their asserts instead.
You need to know and understand the implications of using licensed software in your projects. It's unlikely you can just grab someone else's work and claim it as your own without consequences. Do you due diligence and you'll be fine.