The string worldsheet is a two dimensional surface, so it takes two coordinates to parametrize it. If you pick an inertial observer, you can take one of these coordinates to be his time. Then the lines where this coordinate is constant are the instaneous configurations of the string according to this observer, with each string parametrized in some way by the other coordinate. This is the static gauge. This is pretty obvious, but it turns out to make the equations of motion much nicer than for general coordinates (although there may be other gauges that make other calculations easier). Choosing the second coordinate so that the energy density with respect to this coordinate along the string is constant makes things even nicer.