Tao (道）(pronounced /dao/) means "the way" in Chinese. The ancient Chinese character of Tao (image below) shows there could be many ways to interpret "the way". Taoists believe that Tao provides the ultimate way to the universal truth, just as Marvel's Mandalorian always says, "This is the way."
There is no better way to understand Taoism than by reading the original text by Laozi, the author of Tao Te Ching (the Classic of Tao and Virtue)(475 BC - 221 BC), and the founder of Taoism. Click here to read the complete translation. Here is how Tao De Jing begins:
The Tao that can be trodden is not the enduring and unchanging Tao. The name that can be named is not the enduring and unchanging name.
(Conceived of as) having no name, it is the Originator of heaven and earth; (conceived of as) having a name, it is the Mother of all things.
Always without desire we must be found,
If its deep mystery we would sound;
But if desire always within us be,
Its outer fringe is all that we shall see.
Under these two aspects, it is really the same; but as development takes place, it receives the different names. Together we call them the Mystery. Where the Mystery is the deepest is the gate of all that is subtle and wonderful.