Generically, temperature compensation is the adjustment in performance of a system to compensate for changes in temperature. Temperature affects almost everything, sometimes in a negative way. So, temperature compensation is a method of adjusting the temperature or parameters to keep things operating normally.
For examples, piezoresistive pressure transducer SS100 series, you see from the picture 1, all stainless steel 316L housing, a small circuit with temperature compensation function is integrated inside, have a 0.2mV output signal at room temp (25degC), now the temperature rise to 80degC(keep other parameters same), the output signal is 1.6mV. Big changes in different temperature, need to compensated this change, and get the signal to 0.2mV. Usually the temperature compensation is finished in the transducer, and the temperature rang is 0-70 degC. Also see the picture 2, a thin type piezoresistive pressure transducer, only 5.6mm height, it can mount a external temperature compensation circuit on the top side of the sensor.
