A potentiometer, or "pot" for short, is a variable resistor. Turning the pot alters the resistance of the electricity flow running through it. This resistance is represented by a strip. As you move the shaft (the knob on the outside), youll modify the length distance electricity needs to come out of the other side of the pot. The more resistance strip covered, the more gain will be lost. When the resistance is close to zero, the gain loss will result in silence.

Volume and Tone Pots

Is there a difference between volume and tone pots? The answer is no, volume and tone pots are essentially the same, although, for personal sonic preferences, you might want to use different types of pots for volume and tone. The only difference is that tone pots have caps soldered on to them, making them act as an equalizer. 

Split or Solid Shaft?

Split-shaft potentiometers work well with plastic knobs, and are usually the best pots for Stratocasters. Solid-shaft pots are great for metal knobs like the ones youll find in Fender Telecaster, for example. These knobs require a screw to stay in place.