A stored procedure is sort of function stored at the database level -
you can have a set of SQL statements within the stored procedure; the
stored procedure can take input parameters and have output parameters
as well. For more information see:
Writing a Stored Procedure.
You can store connection string information in Web.config, yes. I
don't know if this has an official name, though. To learn more
about saving connection strings in Web.config see:
Specifying Configuration Settings in Web.config.
Happy Programming!