If you have problems with your PC locking or going to sleep, caffeine will keep it awake. It works by simulating a keypress once every 59 seconds, so your machine thinks you're still working at the keyboard, so won't lock the screen or activate the screensaver.
The icon is shown above - it's the leftmost one in the task tray, and this is all you see. Double-clicking the icon empties the coffee pot (that's what the icon is) and temporarily disables the program. Double-clicking it again refills the pot, and will keep your machine awake. By default the app starts enabled, and works every 59 seconds.