More formally, we can state the Transfinite Recursion Theorem as follows. Given a class function $G\colon V\to V$, there exists a unique transfinite sequence $F\colon\mathrm{Ord}\to V$ (where $\mathrm{Ord}$ is the class of all ordinals) such that $F(\alpha) = G(F\upharpoonright\alpha)$ for all ordinals $\alpha$. (Wikipedia, transfinite induction)
First question is, what does $\upharpoonright$ mean? Also, what exactly is $F$ in this usage? $F$ seems to be some form of function, but it says its transfinite sequence...
As Brian mentions, the $\upharpoonright$ symbol denotes the restriction of the function (on the left) to the set (on the right).
In the theorem, $F$ is a function whose domain is the class $\mathbf{On}$ of all ordinals. As $\mathbf{On}$ is ordered by $<$ it is nice to think about $F$ instead as a "sequence" indexed by all ordinals: $F = \langle x_\alpha : \alpha \in \mathbf{On} \rangle$ (so that $F(\alpha) = x_\alpha$). Note that given any ordinal $\alpha$ as $\mathbf{On} \cap \alpha = \alpha$ it follows that the restriction $F \upharpoonright \alpha = \left( \langle x_\alpha : \alpha \in \mathbf{On} \rangle \right) \upharpoonright \alpha$ is just the $\alpha$-sequence $\langle x_\xi : \xi < \alpha \rangle$. The theorem then tells us what the $\alpha$th coordinate of $F$ is: $$x_\alpha = G ( \langle x_\xi : \xi < \alpha \rangle ).$$ Note that since $\alpha$ is a set it follows that the restriction $F \upharpoonright \alpha = \langle x_\xi : \xi < \alpha \rangle$ is also set, and is thus a legitimate argument for the function $F$.
Depending on the axiom system used, the exact meaning of this theorem may differ.