A silo is a tall, cylindrical building. Initially, as Webster 1913 says, it was used to pack grains for storage. These are referred to as grain silos.

The twentieth century saw a new type of silo, the missile silo. These enclosures were used to raise missiles perpendicular to the ground and launch them, usually for impact on ground owned by someone disliked by the silo's builder.

Ironically, the original type of silo has more interesting explosion lore bound up with it. Imagine a silo full of flour. Now, flour is combustible, but if you put a match to a pile of flour not much happens, because only a little bit of the flour's area is exposed to the air, where it can react with the oxygen. But when our silo is supposedly empty, there is actually a good deal of flour floating in the air, like dust. Now, it's all exposed at once and can all combust at once. A stray spark can cause a massive explosion. Like much of applied physics, it is simultaneously amazing and not funny at all.

For more information, see blow up a building with a sack of flour and two rounds of ammunition -- a node which I neither authored nor endorse, but which does illustrate the principle nicely.