My question is a duplicate, though I didn't know that at the time of posting.
The area is called the "Mode Line" The link provided by PP:
http://gnu.org/software/emacs/manual/html_mono/emacs.html#Mode-Line
provides the current link to a thorough explanation about the the mode. (the duplicate question had an out of date answer, which I noticed PP also commented on)
I found a more concise explanation here, http://www.emacswiki.org/emacs/ModeLine