The blind spot is the location on the retina known as the optic disk where the optic nerve fiber exit the back of the eye. Because there are no cones or rods at this point on the retina, there is a very small gap in the visual field.
Researchers have proposed a number of different explanations as to why we do not notice this blind spot. Some suggest that the opposite eye compensates for the missing visual information. One of the most commonly accepted theories is that the brain actually fills in the missing information using visual cues in the environment.
You can see the phenomenon in action in this blind spot demonstration.