Touch ID on MacBook is the name of Apple's fingerprint identity sensor. It's a form of biometric security that's meant to be more convenient than entering a passcode or password.
Once you add your fingerprint to your MacBook Air or MacBook Pro, you'll be able to do the following:
Wake and log into your user account from sleep (you'll have to sign in with your password the first time.)
Switch between users from sleep if they each have separate fingerprints saved.
Use Apple Pay on the Mac.
Authorize purchases from the iTunes, iOS App Store, or Mac App Store.
How to Add Your Fingerprint
Open System Preferences from the Apple Menu or from the Dock.
Select Touch ID.
Click on Add a Fingerprint.
Enter your password.
Follow the instructions to register your fingerprint by resting your finger on the Touch ID sensor repeatedly until the registration is complete.