Let's begin by understanding the letters and their meanings, then we'll give context to everything.
- $\exists$ is a quantifier. It means that the following symbol is a variable (a set, in the case of set theory) and we assert there is an object which the properties which we require that symbol to have.
- $S$ is that symbol. It is a placeholder that will be used to refer to some object in the universe, and describe some properties of that object.
- $\varnothing$ is the empty set.
- $\in$ is the membership relation, so when we say $\varnothing\in S$ we say that the empty set is a member of $S$.
- $\land$ is the symbol for conjunction, it means that we want both the part in the left of the symbol to be true, and the part on its right.
- $(\forall x\in S)$ is a bounded quantification. $\forall$ is the quantifier for "for all", so it says that we want that all the members of $S$ will have a certain property.
- $x\cup\{x\}$ is the union of the set $x$ with the set $\{x\}$. Remember that in set theory all the variables refer to sets.
So all in all what do we have? The axiom of infinity says the following thing:
There exists a set $S$, such that the empty set is a member of $S$, and whenever $x$ is a member of $S$, so is $x\cup\{x\}$.
Then what do we have? $\varnothing\in S$, and therefore $\varnothing\cup\{\varnothing\}=\{\varnothing\}$ is a member of $S$. Therefore $\{\varnothing\}\cup\{\{\varnothing\}\}$ is a member of $S$. Therefore $\{\varnothing,\{\varnothing\}\}\cup\{\{\varnothing,\{\varnothing\}\}\}$ is a member of $S$. And so on ad infinitum.
If we think about $\varnothing=0$, and $x\cup\{x\}$ as $x+1$ we have that $0\in S$, $1\in S$, $2\in S$, and so on. So $S$ corresponds to a set which contains the natural numbers, and so it is infinite.
Of course $S$ may include other objects, but we can conclude with the other axioms that there is some $S$ which includes only the natural numbers in the way we represent them with sets. This set is commonly known as $\omega$.