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Apple’s Genius feature in iTunes and on the iPad analyzes your music collection and automatically generates Genius Playlists and Genius Mixes for you. These are sets of songs (or, in the case of the Mixes, song sets from a particular music genre) that the Genius thinks sound good together.
You can sync Genius Mixes over from iTunes or have your iPad automatically generate them. They appear in the Genius list when you have enough music to collect into genres; tap the Playlists button to see them. Genius playlists are a little more personalized, because they require you to choose the first song, which inspires the Genius to select songs that go with it.