The meaning of LITERACY is the quality or state of being literate. How to use literacy in a sentence. Literacy is usually defined as the ability to read and write, or the ability to use language to read, write, listen, and speak. In modern contexts, the word refers to reading and writing at a level adequate for communication, or at a level that lets one understand and communicate ideas in a literate society, so as to take part in that society. Literacy can also refer to proficiency in a number of fields, such as art or physical activity. Our digital literacy management platform helps students to improve their English literacy online through fun, engaging and curriculum-aligned exercises.