It's referring to your connection to the internet e.g. via your wifi router. If you are getting a 'network timeout' error when downloadin the update then try temporarily turning off all your firewall and antivirus software until the download has completed. Also you can only update to iOS 6.0.1 on an iPad 2, as that is the only version that is 'signed' by Apple for it.
This site contains user submitted content, comments and opinions and is for informational purposes only.
Apple disclaims any and all liability for the acts, omissions and conduct of any third parties in connection with or related to your use of the site.