What does it mean to restore an iphone?

So I had an ipod synced with itunes on my computer with all my music on it. I got a new iphone and i want to connect it to my computer to get the music only, not the rest of the stuff on my ipod. When i plugged my phone in, it said it was restoring my iphone to my ipod? What does this mean? And if i do this will i get EVERYTHING on my old ipod? And will i lose everything on my phone?

It means to restart everything maybe everything will be deleted and maybe everything won't. Possibly some things will and some won't but dnt worry

Yes, it will delete stuff in your iPhone which are not in the iTunes library, and sync the iPod stuff which are in the iTunes library to your iPhone.

So you need to transfer all your stuff in your iPhone to the iTunes library first.
You need to find some free iPhone transfer, like Syncios, to do that.

Here is a tutorial you may need.
http://www.syncios.com/how-to-transfer-music-from-iphone-4s-to-computer.html