"lumped" means that the dimension of you ckt element is much smaller than the wavelength of the signal passing through it. Therefore, you can treat your ckt element as a lumped unit (against the wavelength), and do not have to worry about wave propagation phenomenon "within" your ckt element. The opposite of "lumped element" is "distributed network."
Typically, in low-frequency ckt/network, since the frequency is low, therefore, the wavelength is large (wavelength = propagation speed(usu. speed of light) / frequency ), so most elements can be treated as lumped. However, as frequency goes higher and higher, the wavelength becomes shorted and shorter, the wave propagation effect WITHIN the ckt element becomes more and more pronounced.
I hope the above explanation help. Thanks.