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...aka two-end knitting, a several hundreds year old traditional Scandinavian knitting technique. You use two strands of yarn (even when knitting in solid color). Knit each strand alternately and twisting them between each and every stitch. The resulting fabric is firmer and denser than regular stockinette stitch and creates a warm, dense and wind-resistant fabric. As perfect today for mittens, hats and socks... as it was back in the 17th century.
When working twined knitting most common is to be knitted in the round and with the yarn held in the right hand as an opposite to regular Scandinavian knitting where you hold the yarn in your left hand.
In other fair-isle techniques the strands are running parallel instead of being twined as in twined knitting. Fair-isle is creating a much less dense fabric than what you get with twined knitting.