http://www.youtube.com/watch?v=MXyP7i7lspE&feature=related Definition - What does Digital Envelope mean?

A digital envelope is a secure electronic data container that is used to protect a message through encryption and data authentication. A digital envelope allows users to encrypt data with the speed of secret key encryption and the convenience and security of public key encryption.

digital envelope
(1) An encrypted message that uses both secret key and public key cryptography methods. A secret key is used to encrypt and decrypt the message, but the public key method is used to send the secret key to the other party. See RSA. (2) A frame, or packet, of data that has been encrypted for transmission over a network. (3) A term occasionally used to describe inserting data into a packet or frame for transmission over a network. The envelope metaphor implies a container. See encapsulation and container.

Key Wrapping
This section describes the process of wrapping symmetric keys. When generating a digital envelope, you encrypt bulk data with a symmetric cipher and then encrypt the symmetric key with the recipients RSA public key. That process of encrypting the symmetric key is called key wrapping.