The diagram shows an electrolytic cell.
The electrolyte is an aqueous solution. For example it might be concentrated sodium chloride, NaCl (aq).
The test tubes over the electrodes must not completely cover them to make sure the ions are free to move throughout the solution.
In the case of NaCl (aq) bubbles of gas will be seen forming at the electrodes. These float up and collect in the test tubes when each gas can be tested to assess its identity.