1: The EVM will take a smart contract, compile it into EVM byte, then tell CPU how to execute the code.
2: The EVM does not run on local computer. Being virtual protects the network operators from code that is malicious or spamming.
3: Solidity is the main language used to program smart contracts; Bytecode is what the EVM compiles the smart contract into to read and execute it.
4: Because the language of Bitcoin, Script, is not turing complete, it cannot run the complexity of various programs or applications that Ethereum can.
5: Essentially, it means that it is a programming language that is flexible with no limitations.