it can means tons of different things from all the different manufacturers, but for the most part you have the transmission, steering, suspension, and engine that can all be modified electronically. the steering and/or suspension may tighten up, some cars even physically lower themselves closer to the ground for better center of gravity, the transmission a lot of times is tuned to shift quicker and hold higher rpm for longer, and sometimes the computer will change the engine tuning to give it a little more power, which is probably the least common feature as far as “sports mode” goes. Sometimes it’s just one of these, sometimes it a combination of them, all depending on the make and model usually.
EDIT: I forgot to add that sometimes the exhaust is muffled intentionally for a quiet ride, but this can be opened up electronically giving your exhaust a louder sound, (not necessarily better) but typically you wont see any kind of performance increase from this.
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