A Bio-Wheel is a type of filter that generally hangs on the back of the tank and has a unique 'paddle-wheel' (like an 'ole Mississippi boat). After the water has passed through the back filter, it travels over the 'wheel', which turns, before it re-enters the tank.
The 'wheel' itself looks like an accordian of paper folded upon itself to increase the surface area in which beneficial bacteria can grow and live. The turning motion ensures that the 'wheel' is always wet, and can add to the overall oxygen count to the water.
You can find them in Penguin filters and are manufactured by Marineland. Considered by many as very effiecient for low and mid-size tanks. They are pretty quiet.