From Stacy Slinkard,
Your Guide to Wine.
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The Italian Wine Classification system (similar to the U.S. appellation system) is made up of four categories:

Denominazione di Origine Controllata e Garantita (DOCG)

This classification denotes the highest quality recognition for Italian wines. It is comprised of a relatively limited number of first-class wines.

Denominazione di Origine Controllata (DOC)

Basically the equivalent of the French wine classification, Appellation d'Origine Controlee (AOC). Wines that fall under the DOC category must be made in specified, government defined zones, in accordance to particular regulations that are intended to preserve the wine's character that is uniquely derived from Italy's individual regions.

Table Wine Categories

Indicazione di Geografica Tipica (IGT)

These table wines are often ubiquitous wines that are grown in a specific geographical growing regions. However, there are exceptions - some of Italy's best wines do fall under this category just to avoid more stringent regulations associated with DOC or DOCG.

Vino Da Tavola (VdT)

This designates wines that reside firmly on the "low end" of the totem pole. Comprised of Italian table wines, whose only criteria is that they must be produced somewhere in Italy.