Short for Parameter RAM. Parameter RAM is memory devoted to the storage of settings (as opposed to other raw data) for a particular device. In a Mac computer PRAM stores network settings, screen configurations, and many other aspects of the overall setup of the computer. In musical keyboards PRAM is where program and general setup data are stored. For example, an instrument may use PCM or other types of sampled sounds as its raw waveform data, but the programs themselves (filter settings, tuning, etc) are often stored in PRAM. PRAM is like most RAM in that it will lose its data if power is removed so most PRAM chips have a constant voltage supplied by a battery in the device.
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