If someone says they are asexual, they are talking about their sexual orientation.
If you know someone who identifies as asexual, it means that they do not experience sexual attraction towards any gender. Unlike celibacy, which people choose, asexuality is an intrinsic part of who a person is. Being asexual doesn’t mean a person can’t have sex, relationships, or experience sexual feelings and pleasure. Asexual people have the same emotional needs as anyone else, and like in the sexual community, they vary widely in how they fulfill those needs. Some asexual people are happier on their own, others have a desire to form more intimate romantic relationships, and will date and seek long-term partnerships. Asexual people are just as likely to date sexual people as they are to date each other.