During a bus hold, the 8086 processor stops using the memory bus and electrically disconnects from the bus by going into "tri-state" mode. This lets an external device take control of the bus and access memory directly. This can be used for high-speed input/output (DMA).
The Intel 8087 math coprocessor chip performed floating-point operations and trig. You could plug an 8087 into your IBM PC and do math up to 100 times faster than the 8086 processor. The 8087 chip couldn't talk to the 8086. Instead, it used "bus hold" to access memory directly.