Anchor Text:

Anchor Text is the visible, clickable text in a hyperlink. In modern browsers, it

is often blue and underlined, such as this link to the moz homepage.

Code sample

<a href="http://www.example.com">Example Anchor Text</a>

you change your website's link colors and styles through your HTML or CSS.
Search engines use external anchor text (text other pages use to link to your
site) as a reflection of how other people view your page - and by extension,
what your pages may be about. While website owners typically can't control
how other sites link to theirs, “you can make sure that anchor text you use
within your own site is useful, descriptive, and relevant.

Types of anchor text

Exact-match

Anchor text is "exact match" if it includes a keyword that mirrors the

page that is being linked to. For example: 'link building' linking to
a page about link building.

Partial-match
Anchor text that includes a variation of the keyword on the linked-to
page. For example: 'link building strategies' linking to a page about
link building.
Branded
A brand name used as anchor text. For example: 'Moz' linking to an
article on the Moz Blog.
Naked link
A URL that is used as an anchor 'www.moz.com' is a naked link anchor.
Generic
A generic word or phrase that is used as the anchor. "Click here" is a
common generic anchor.

Images
Whenever an image is linked, Google will use the text contained in the
image's alt attribute as the anchor text.
As search engines have matured, they have started identifying more metrics
for determining rankings. One metric that stands out among the rest is link
relevancy, or how related the topic of page A is to page B if one links to the
other. A highly relevant link can improve the likelihood of both page A and
page B ranking for queries related to their topic.

Link relevancy is a natural phenomenon that occurs when people link out to
other content on the web. It is determined by:

 The topic of the source page

 The content of anchor text on that source page

What is a backlink?
A backlink is a link created when one website links to another. Backlinks are
also called "inbound links" or "incoming links." Backlinks are important to
SEO.