as name saids a true bypass means that there is a REAL bypass. so the signal skip totally the pedal just with no electric components or relays. it is achieve with dpdt stompboxes that internally have a real cable bridge that allows you to skip the pedals.
there are another bypass methods for example with fets or relays, even I remember seen a bipolar npn config to skip, but they are not REAL.
The REAL means that the input and the output are exactly the same, event with the pedal off or without the battery, the best way to see if the pedal is true bypass is with an oscilloscope and doing a sweep frecuencie.
Check my pictures, they are a pretty as naomi campbell in underwear:
the input
the output
on the right is my laptop with the spectralab, a very useful software tool to do spectrum anal-yze
So you could see that this jimi hendrix wah suffers a true bypass mod do by myself
so a real true bypass is for audio purist or chains with so long cables, the classical fet bypass is good for one or two pedals.
true bypass are doing for avoid the classical tone sucking, but there are so many other elements that could cause a tone sucking even with a true bypass, but this is a discussion for another thread...
hope it is useful for you