What scientific notation is
Scientific notation writes a number as a coefficient between 1 and 10 multiplied by a power of ten. 123,456 becomes 1.23456 × 105 because the decimal point moves five places to the left; 0.000123 becomes 1.23 × 10-4 because it moves four places to the right. The exponent is the number's order of magnitude, which is why the form is used for quantities as far apart as the mass of an electron and the distance between galaxies.
In British schools the same thing is taught as standard form. Be careful with that name in American material, where "standard form" often means the ordinary decimal instead.
E notation and engineering notation
E notation is the same idea written on one line: 1.23E-4 means 1.23 × 10-4. It is what calculators, spreadsheets and most programming languages print when a number is too large or small for the display. Engineering notation restricts the exponent to multiples of three, so 0.000123 is 123 × 10-6 — which reads directly as 123 micro-units, matching the SI prefixes kilo, mega, milli and micro.
Significant figures
Significant figures are the digits that carry meaning about precision, starting from the first non-zero digit. 0.004560 has four: the leading zeros only place the decimal point, while the final zero says the value was measured to that place. A whole number such as 1200 is ambiguous — it might have two, three or four significant figures — so the converter counts only the 12 unless you type a decimal point (1200.), and tells you when that has happened.
Rounding to a chosen number of significant figures rounds half away from zero, and pads with zeros when you ask for more digits than you typed, so 2.5 to four significant figures is 2.500 × 100.