BitBake - What is it?
BitBake is a tool that "at its simplest, a tool for executing tasks and managing metadata." This is what drives the OpenEmbedded system. OpenEmbedded is really just a repository of configuration files and information that this tool, BitBake, uses for building and compiling everything.
BitBake handles the order of compiling for all the packages. Applications on Linux, especially manually compiling them, require a lot of extra dependent files. In order for each package to compile properly the dependent packages must be compiled first. BitBake takes care of all of this. Technically the configuration files tell BitBake in what order to compile all needed packages.
With the set of configuration files that come with OpenEmbedded you can build an entire distribution with just a single BitBake command.