Not exactly.
A mod could be changes from new items, to new skills, to new monsters, animations, storyline, dungeons, runes, glyphs, gems, runewords, gemwords... basicly the entire game can be changed.
Some do simple stuff. Like increase drop rates and put bosses everywhere. IE fight Diabo in the Blood Moor.
Others, refered to sometimes as "total modifications" change the game experiance completly. For instance, Back to Hellfire makes D2 like Diablo 1 Hellfire. There are books, and the items are the same as D1, the characters are the same and the quests are the same.
If you play D2: LoD on v 1.10 you should really check out www.d2mods.com and download some of the more popular mods. Eastern Sun and Sanctuary in Chaos are some of the more popular total modifications. There are also boss mods and drop mods.
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