What is a pave setting? Funny name simple explanation

I have come across the term Pave setting in looking for vintage jewelry and really had no idea what it is, I figured I am not alone. It is a setting for small stones/rhinestones or even diamonds where h the stones are set so closely together that no metal shows. A pavé surface appears to be paved with stones. Think of pavement of stones when you see the term pave. Something like the image I have here.