The Free Dictionary defines manual dexterity as the ability to use hands with notable skill. The term is frequently associated with athletic pursuits or crafts that involve use of the hands.
Wikipedia explains that manual dexterity is often called fine motor skill. Fine motor skill involves the coordination between the muscles of certain body parts and the eyes. Wikipedia explains that manual dexterity is used to describe fine motor skills that require extensive coordination between the various parts of the hands and the eyes. Manual dexterity is commonly used in such disciplines as woodworking and in the sport of archery.