Wellllll I'll give this a try. It is a little broad, and you are a little mixed up on the networking bit.
Latency is basically the amount of time between intervals. For example you hear about latency in a network also but its not related to RAM. In a network when computers are communicating (your computer, to the one that has the website you are attempting to view) your computer first sends out a signal to the other computer. The other computer will get the signal and then send a signal back to your computer. For the network, the latency is how long it takes for that for your computer to get a return signal from the other computer starting when your computer first sends the original signal.
For example, lets say you wanted to write a letter to someone, you could view this as latency also. You send a letter to your friend who lives in Chicago while you live in New York, the latency in this situation is the entire amount of time that passes before you receive a letter back from your friend.
Hope that makes sense so far.
Well then there is RAM which is similar. The entire computer system works on a clock, for example your CPU, the i7-4770k, does 3.5Ghz of calculations every 1ns. The RAM doesn't quite do the same, it has what is called timing, typically you will see this as a series of numbers such as 9-9-9-24. Basically what is happening is the RAM doesn't send information to the CPU every nanosecond, it will only do it ever 9ns. The time between points at which the RAM would send information again is viewed as latency.
There is more to it than that, but that is trying to cut it kind of simple. There are a lot of latency settings for RAM, for example that 9-9-9-24, each of those is a different aspect of the RAM with a different latency. There are a lot more than just those too, so its a really long story. If you want to know more you are best to search from RAM Timings and RAM Latency and you should be able to find some good sources.