Encrypted Server Name Indication (ESNI) is an extension to TLSv1.3 that encrypts the Server Name Indication (SNI) field in the ClientHello of the TLS handshake. In simpler terms, when you connect to a website example.com, the SNI (example.com) is sent in clear text, even if you have HTTPS enabled. ESNI encrypts this SNI field, thus preventing an observer such as your coffee shop/ISP/government from learning which websites you are visiting.
For more information, we recommend the posts by
EFF and
Cloudflare that explain what ESNI is and its importance.