Given a regular 2D or 3D grid, the distance transform assigns to each grid coordinates the minimum distance from an object to this point resulting into a scalar signed or unsigned field.
This field can than be used to perform morphological operations on the original object (dilation, erosion, etc.). The processed scalar field can than give a new object by extracting new isocurve or surface by techniques like the Marching Cube algorithm.
The distance transform is often used to extract the medial axis of segmented objects.
The exact distance transform can be relatively slow to compute and fast approximations exists. See links below.
Thank you Bruno Martin for your quick help and also for the information along with useful links. I'll surely give a look. If I have any question, I'll again discuss with you. Best wishes.