Varnish is a clear transparent hard protective coating or film. It is not a stain. It usually has a yellowish shade from the manufacturing process and materials used, but it may also be pigmented as desired, and is sold commercially in various shades.
Varnish is primarily used as a wood finish where, stained or not, the distinctive tones and grains in the wood are intended to be visible. Varnish finishes are naturally glossy, but satin/semi-gloss and flat sheens are available.