What is a Resource Compiler?

In CodeBlocks under the project build options there is a tab to add search directories to a resource compiler. What is it and what does it do?
I think Resource compiler could be referring to your picture files like jpg, bmp, png and possibly those <filename>.properties files etc etc and need to be "compiled" into some C++ constant so you can reference them by say ID in your C++ program ? This is same concept in Android SDK for those external picture files and <filename>.properties.

I presume you are developing on Windows platform ?
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I normally use Linux, but this question started to bother me when I was setting up a library on CodeBlocks on Windows 7.
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