My favourite company and defacto curators of good sound, Bower & Wilkins, just published an article on their Society of Sound web site, explaining lossless audio in general and Flac in particular in what can only be described as kid’s stuff. One can argue whether digital sound distribution is difficult material, but I find it indisputable that the topic is notoriously hard to convey. It is this last bit I think B&W did better than anyone before them.
If you don’t know Flac, read it to get a non-technical explanation. If you do know the technicalities, read it anyway… if for nothing else, then to get an example of how to explain it yourself.