QFE (from the old Morse "Q" codes) doesn't stand for anything, it is one of the three standard altimeter settings: -
QNH - set to give altitude AMSL, either for a specific airfield (airfield QNH) or a local average (regional QNH). The former is usually used for airfield departures, the latter for safe separation of transiting traffic at lowish levels.
QNE - 1013.25mb, only normally set above FL30.
QFE - set to give height above a datum point on an airfield, which is usually the threshold of the primary runway. It is used when transiting the overhead of an airfield, or when operating with the intention of a landing at that airfield.
QFE is largely a UK habit, probably because most other countries have too many airfields whose QFEs would be off the scale of a common or garden altimeter. It is however a useful tool, since for airfield approaches and suchlike, it removes any need for in-flight calculations of height, and thus aircrew workload (albeit only slightly). It does however confuse visiting American pilots since they have only just about grasped millibars / heptopascals, and the idea of setting anything but QNH (which they simply call "altimeter") throws them. Not their fault poor chaps, just the way they do things over there.
Oh yes, and the Royal Navy hardly ever uses QFE, they operate entirely with QNH. Not sure why, any ideas?
G