The official android documentation describes Context:
Interface to global information about an application environment. This is an abstract class whose implementation is provided by the Android system. It allows access to application-specific resources and classes, as well as up-calls for application-level operations such as launching activities, broadcasting and receiving intents, etc.
and Service as
A Service is an application component representing either an application's desire to perform a longer-running operation while not interacting with the user or to supply functionality for other applications to use.
Context is actually a broad name, which might be difficult to understand in specific use. You might want to check out a good explanation here.
The inheritance of service from object might be clearer, just imagine context being something in between them, just not as abstract as object.