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The extension stroke of a damper (shock absorber) as the suspension returns from a compressed state. Rebound damping controls how quickly the suspension extends, affecting how the car settles after hitting a bump or transitioning out of a corner.
Bentley explains in Ultimate Speed Secrets: "Shocks work in both directions: Compression is called bump; extension is called rebound. A shock absorber, therefore, is rated by the rate of deflection at a given shaft speed, both in the bump and rebound direction. If the car's springs are force sensitive, the shocks are velocity sensitive." He adds the tuning insight: "You can also use the shock absorbers to alter the transient handling characteristics of the car." Staniforth's Competition Car Suspension details the adjustment mechanism: "The rebound adjuster on the 8100 Series shock absorber is located in the eyelet at the base of the main shaft. The rebound adjuster has two full turns of adjustment or 12 flats. From the full hard setting, count the clicks out to the full soft setting." Rebound damping is typically set 2-3 times higher than bump damping — the spring pushes the wheel back down, and the rebound damping controls how aggressively it does so.