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Stability generally means that all internal signals remain bounded. This is a standard requirement for control systems to avoid loss of control and damage to equipment. For linear feedback systems, stability can be assessed by looking at the poles of the closed-loop transfer function.
Checking the closed-loop poles gives us a binary assessment of stability. In practice, it is more useful to know how robust (or fragile) stability is. One indication of robustness is how much the loop gain can change before stability is lost.
Changes in the loop gain are only one aspect of robust stability. In general, imperfect plant modeling means that both gain and phase are not known exactly. Because modeling errors are most damaging near the gain crossover frequency (frequency where open-loop gain is 0dB), it also matters how much phase variation can be tolerated at this frequency.
The phase margin measures how much phase variation is needed at the gain crossover frequency to lose stability. Similarly, the gain margin measures what relative gain variation is needed at the gain crossover frequency to lose stability. Together, these two numbers give an estimate of the "safety margin" for closed-loop stability. The smaller the stability margins, the more fragile stability is.
Phase and Gain margins provide information in terms of stability. Think about them as the margins on engineering papers: They represent the [extra] room you get, in case you [had] to run outside the specified space for writing. The same analogy apply to systems. In fact Phase and Gain margins got their name from the same concept. In another word, Phase and gain margins represent the amount of phase and gain the system can achieve before it become unstable.
