Binaural
Binaural is the term that describes the act of hearing with both ears.
In its strictest sense, "binaural" refers to how our brain processes the small differences between what the left ear and the right ear hear to determine the direction and location of a sound source in space.
Our brain uses clues such as:
The difference in time it takes for the sound to reach each ear.
The difference in intensity (volume) and pitch of the sound in each ear (the head blocks part of the sound).
Binaural Recording
The term is also used to describe a specific recording technique that attempts to capture sound exactly as human ears hear it. This is done using a special microphone shaped like a human head (or microphones positioned inside a person's ears). When this audio is played back on headphones, it recreates an incredibly realistic and immersive 3D sound experience.