I will try and explain.
Humans tend to count in tens (cos of our fingers and thumbs I suppose). Decimal notation.
When we get up to 9 we start again in that column with 0 and move a 1 into the tens column so it becomes 10.
Same with 99, next is 100 and 999, next is 1000 and so on.
Lets suppose we did not have 10 fingers and toes and just one limb. So the only numbers in our counting system were 0 and 1. There are no other numbers just 0 and 1.
This is called binary and all the computers in the world work on the binary system. Also all digital devices like CDs, DVDs, digital phones, digital TVs, digital cameras etc
ALL information is held as a ZERO or a ONE.
So we start counting with ZERO (0). Next number is ONE (1).
We have no 2, so the next number is 10 (not ten but 1 and 0).
So in Binary 10 is actually 2 hence the joke.
To continue the counting, after 10 we have 11, but we cannot go to 12 so must go to 100, then 101, then 110, then 111 then 1000 nd so on.
So in binary 1000 is actually 8.
This may sound confusing but is very important in the world of computers where information is important, it is much easier for a computer to count in just 0 and 1 than have thousands of numbers.