This is a machine that can generate a pulsetrain ( repetitive / arbitray / encoded ) at a given clockrate with specified timing parameters ( rise time / fall time / setup time and hold time )
They are used to emulate real signals.
For example : the servo track of a harddisk contains a pilot tone ( 10 periods 50% duty cycle ) followed by a manchester encoded sector number in a fixed amount of bits. To emulate this you can program this as a pattern
1100110011001100...1100 would give you the pilot followed by 111100111111000011000011 which could be the encoded track number.
To test the performace of the demodulator block in the read channel you can now play with all kinds of parameters: you can drift the clock , inject jitter , create unexpected things ( like 1 missing clock period , or one assemetric clock period ) and study how the circuit behaves.
We typically use AWG's to do this. things like the AWG710B from Sony/tektronix. That can be classified as a Pattern generator