Beta is a concept most game developers put out there so that the gamer (you) has the ability to play the game prior to it's release in order to find bugs, suggest modifications, and load test the servers in order to try and work out all the kinks before the real game goes live.
It's awesome for the gamer, as well as the developer =).
It's just a phase in the late stages of a game's development period. It's basically a trial period during which people can try out the game and where the developers get feedback on how good/bad/glitchy it is before the game's official release date. And this is what's happening to FFXIV before the PC version comes out later this year.
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