Yeah, it's a nebula. Nebulas are where stars are born. It's a cloud of gas, in which over time, form into stars. Once they form, the stars go on their merry way.
I'm not sure if that particular nebula is in our galaxy or not, but rest assured, there are probably millions of nebulas in our own galaxy right now giving birth to new stars.
Pretty much everything in the universe is star stuff.
In the immortal words of Carl Sagan, "we are star stuff."
How you ask?
Well, let me tell you.
Life starts with death. The death of a star. When a star explodes at the end of its life in a supernova, it becomes so intensely hot that it combusts all the elements up to Iron I believe which is around the 26th element. Basicallt, 26 elements go shooting out from the star. These elements are collected and form new stars. Stars would not exist without death. We are made up of the elements stars produce.