Dalvik is a virtual machine used by Google's Android operating system.
From Wikipedia:
Dalvik is the process virtual machine (VM) in Google's Android operating system. [...] Programs are commonly written in Java and compiled to bytecode. They are then converted from Java Virtual Machine-compatible .class files to Dalvik-compatible .dex (Dalvik Executable) files before installation on a device. The compact Dalvik Executable format is designed to be suitable for systems that are constrained in terms of memory and processor speed. [...]
A tool called dx is used to convert some (but not all) Java .class files into the .dex format. Multiple classes are included in a single .dex file. Duplicate strings and other constants used in multiple class files are included only once in the .dex output to conserve space. Java bytecode is also converted into an alternative instruction set used by the Dalvik VM.