Thatch is the dead grass from mowing that does not get picked up and settles on the bottom of your lawn. If you look at your lawn in the spring after the color has returned to your lawn you will able to see the dead grass lying beneath the new spring lawn. Thatch is a normal by-product of mowing. It becomes a problem when people go years without de-thatching. If you use a grass catcher on your mower you will probably need to de-thatch less than if you use a mulching mower or a mower that has a side discharge on it.
By allowing the thatch to build up, your lawn may begin showing areas of minimal growth because of the excess of decaying clippings. Moisture can form under the dead grass giving way to grubs and mold. If it builds up too much it may choke out or smother existing healthy grass.
Some people simply rake their lawn with a heavy-duty metal rake every spring or in the fall. It is recommended to de-thatch when the mowing season is coming to a close in the fall but you will not injure your lawn if you do it the spring. You can also go down to the local outdoor equipment rental store and rent a de-thatcher. These are devices that attach to a riding mower or are machines that can be pushed from behind. These machines or attachments have spring-loaded tongs on them that move across the lawn when they are pushed or pulled. The tongs act like a rake and loosen up the dead grass (thatch) and bring it to the surface. Depending on what device/machine you are using the clippings may be picked up as you use it. If not then you simply go over the lawn with a rake and gather all the thatch on a pile to be discarded.