Well, I'm kind of a novice at this myseIf, but first explain what an operating system does.
It stores data, processed information, etc.
Well, how do you expect to store the information and process data? With the operating system of course.
But you need a way to tell the operating system what to do? 1's and 0's?? Of course that's not practical. A Unix shell is a kind of interface on telling the operating system what to do, by simplifying it for the user.
You use commands and the shell interprets them into instructions. The instructions (1's and 0's, also called machine language) are what the operating system uses.
So, a shell is a command interpreter that simplifies the way you tell a computer what to do.