A nightly build is a build that reflects the current state of the source code. Each night a script runs and creates an executable including the latest changes.
Would be nice if that script could add the revision in the filename as well. Like 'http://dow...nightly/makehuman-nightly-(r3690)-win32.exe' so we know which revision was added as last one. Plus, if something goes wrong after installing, then it's easier to go back one version. (Many people tend to save the installer over the old one while downloading a new version)