Found this in the FDO data concepts page:
A geometry is represented using geometric constructs either defined as
lists of one or more XY or XYZ points or defined parametrically, for
example, as a circular arc. While geometry typically is two- or
three-dimensional, it may also contain the measurement dimension
(M) to provide the basis for dynamic segments.
So M stands for measurement dimension.
Here's another useful definition from a mailing list:
m' is 'measure' an extra axis of information not associated with the
cartesian x/y/z space. The most common use for 'measure' is actually
for 'measurements', the adding of physically known measurements about
a feature to the abstract 'feature' represented in x/y space in the
GIS. For example, highway management systems often understand the
location of facilities in terms of 'mile posts'. So, in addition to
x/y coordinates, each vertex is also assigned a 'mile' measurement in
'm' which allows the system to accurately place facility information
relative to the 'milepost' system. (Why not just use the x/y
coordinates and calculate distances off of them? Because they are
representational, the distances calculated from the x/y will not be
the same as the actual milepost measurements.)