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The more common DSL router is a standalone device that combines the function of a DSL modem and a router, and can connect multiple computers through multiple Ethernet ports or an integral wireless access point.
A modem is a device to transfer data over another non-data medium. In the old days this was often a phone line, meant to transfer speech, zero's and one's were translated into audible tones to pass over this medium and reverted back on the other side. Different tones for different directions and to increase bandwidth. Today DSL modems do similar things in a audio spectrum a bit outside the normal speech frequencies. Filters are used to avoid disturbances. Most customer access devices combine both a modem and a router in the same device.