The characters combine literally to mean “Politics-Governing Bureau” (政治局), a direct and accurate name for this powerful political body.
The 政治局 is a concept with no direct equivalent in most Western democracies. It's crucial to understand its unique position in China's political structure.
The term 政治局 is almost exclusively used in formal and official contexts. You will not hear it in casual, everyday conversation unless people are specifically discussing politics.