Redlining as far as I know has at least 2 meanings.
In terms of equipment the redilining is taking it to the max. Driving it to its maximum permissable tolerance. Simular to driving a car with the revs bordering on the red zone.
As for print, redlining is just that. Highlighting areas for review/correction or deleting by underlining them in red. This used to be on paper but can be on electronic print allowing the author (an in some cases only the author) to correct any errors.
Agree with the 2 terms above. But have a third....
If I have a procedure for an operation and there is any deviance this will be redlined, basically written up in the procedure in red pen and then signed for by both parties ie. those performing the operation and the client.
Another definition a little different than Laffalot's second:
In construction, redlining refers to "as-built" marks on a drawing showing how something was actually constructed, indicating where there were deviations from the design drawing. Usually done by the contractor, and required to be submitted to the Engineer for review and preparation of "official" record (or "as-built" drawings.
I agree with Carl the execution group changes (with the approval of designer/project engineer depending upon the extent of change) drawings to suit site conditions, usually these are minor chnages, and marked red lines on that changes. These drawnigs are called redline markup drawings and sent to design department for the preparation of "as built" drawings. Engineering/design department incorporates that redline marked up changes in thier originol design and "As Built" drawings are prepared.