A feature team is a team that can work across multiple parts of technology stack in order to get features done without depending on other teams.
A common scenario would be a website that has back-end code that runs on the server and front-end code that runs in the web browser. The back-end might be coded in Java and the front-end might be coded in HTML and Javascript. A feature team would include people with Java skills as well as people with HTML and Javascript skills. This allows the team to complete a customer-facing feature which requires changes to both the front-end and back-end of the system.
Feature teams are often contrasted with component teams.