Domain parking is an advertising practice to monetize traffic visiting an under-developed domain or web site. The domain name resolves to a page containing relevant advertising listings and links. These links will be targeted to the predicted interests of the visitor and may change dynamically based on the results that visitors click on. You may have a technology site, if your visitors click on the web programming links a lot, they will be presented with web programming links more often as the Ad system learns the dominant behavior of your visitors. The owner is paid based on usual pay per click rules (number of clicks and sales generated). The keywords for any given domain name provide clues as to the intent of the visitor before arriving.
Another use of domain parking is to be a placeholder of an existing site. A site has moved and instead of presenting the visitors with a “you will be redirected in 5 seconds or click here”, it presents relevant ads to monetize the old address as well while your visitors begin to move to the new one.
There are ‘one-click’ and ‘two-click’ implementations, that generate ads without the selection of a keyword or may require the visitor to select a keyword that will bring in a list of ads. The ads are targeted based on the domain name or the keyword being selected by the user.
You can park your domain without monetizing but.. let’s not go there. We all know the “Under Construction” animated gifs that completely turn me off and I probably never come visiting that site ever again. Placing ads on your unused domain makes much more business sense, presents a welcoming page to your visitors and imagine their surprise when.. coming back to where-they-saw-that-offer, they find an entire site trying to get their attention. People usually like that, it’s human nature. They also don’t like if they were misleaded and the topic they thought the url stands for turns out to be a totally opposite or to have nothing in common with the one presented before while the domain was parked. I would not be too worried about that though since you were not advertising your domain while it was parked.
You are not allowed to tell people to go to your domain and click the links.
It’s a quick way to have a web presence on your domain names before you build up your web site. It is also a service almost all hosting companies offer to their clients (as they are affiliates to third party parking companies) so it should be easy to find and implement.
Oh, and when you buy a domain, read up on “Domain tasting”. It’s a neat way to check up on the marketability of your domain.

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