Kexts stands for Kernel Extensions, Kernel is actually the heart of macOS, It is basically the one that gets your Operating System boot & work. The function of Kexts are similar to Drivers in Windows. Kexts extend the functionality of macOS by providing additional codes to the kernel. Basically, Kexts are loaded when macOS boots. Simply Kexts are similar to Drivers in Windows, Different hardware needs different drivers that are the basics.
macOS comes with hundreds of defaults kexts, When you use a Macintosh you will probably never have to install any kexts because every Kexts which are needed by your computer are already bundled with macOS.
1 What Happened to Kexts?
At the WWDC conference 2019, Apple announced plans to deprecate macOS Kernel Extensions/KEXTS and replace them with a new mechanism called System Extensions. With macOS Big Sur Kernel Extensions are Deprecated.