It shows the percentage of games you've lost on time in the past ninety days. Play more games without running out of time and the ratio will go down.
help

i was trying to enter a tournament and it said i had to have lower than a 10% timeout ratio what does that mean
Here is a detailed explanation. http://www.chess.com/forum/view/help-support/time-out-percentage-101
Basically wait 90 days. Here is why. "So What can you do about it? Stop timing out. And play a lot. A lot more than average. Because on average, the average amount of games you complete per day (on average) will be removed from that ever-shifting 90-day TO% window. So unless you play more than this average, your TO% will not go down until those pesky timed-out games start disappearing from the radar (and that could take, well, up to 90 days!)"
i was trying to enter a tournament and it said i had to have lower than a 10% timeout ratio what does that mean