The Act of Toleration, passed in England in 1689, granted freedom of worship to Nonconformists (those who didn't conform to the Church of England), but with certain restrictions. It was a significant step towards religious freedom.
Think of the Act of Toleration as a bouncer at a club. Before its implementation, only people on the VIP list (members of the Church of England) could get in. But after it was passed, even those not on the list (Nonconformists) could enter - they just couldn't access all areas or privileges.
Religious Dissenters: Those who refuse to follow established church beliefs and practices.
Nonconformists: People who refused to accept the practices and doctrines set by the Church of England.
Church of England: The established Christian church in England, which has been separate from the Roman Catholic Church since Henry VIII's reign.
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