Technically, "extra virgin" is a grade of olive oil, usually indicating the highest quality oil that is distinguished by its naturally low levels of free oleic acid. To qualify as "extra virgin," an olive oil must have a free acid count of less than one percent.
What do we mean by extra virgin?
The term "extra virgin" means the oil is a virgin olive oil that is extracted from healthy, fresh olives, purely by mechanical means, without the use of heat or solvents. It must have a free acidity (expressed as oleic acid) less than 0.8%.
Why do they call it extra virgin?
Olives are pressed to extract as much oil as possible, producing different tiers of quality. So, the first batch of oil that's produced is “extra virgin” — after that, the olives are further pressed and processed to extract more oil, but the flavor and quality decreases from there.