The commands \thesection, \thesubsection, etc. are commands of any standard document class that show the actual formatted numeration for \section, \subsection, etc. as. I mean that could print some like "3.3" or "III.c" depending of how they are defined.
For example, in the article document class by default \thesection is defined as \@arabic\c@section than mean \arabic{section} (here section without \ is the name of the counter) whereas for \thesubsection is \thesection .\@arabic \c@subsection (i.e, \arabic{section}.\arabic{subsection}), etc.
The \thetitle is a wildcard to the above comnands of the titlesec package, so after a \section{} will be \csname thesection\endcsname and after a \subsection{} will be \csname thesubsection\endcsname, etc.
You can see in the next MWE how \thetitle change to be equal to \thesection or the \thesubsection depending on its position into the text:
\documentclass{article}
\usepackage{titlesec}
\titlelabel{\thetitle\quad---\quad} % "original" format beside \thetitle
\begin{document}
\section{First section}
This is the section \thesection \\
This is the subsection \thesubsection \\
This is the title \thetitle
\section{Second section}
This is the section \thesection \\
This is the subsection \thesubsection \\
This is the title \thetitle
\subsection{First subsection}
This is the section \thesection \\
This is the subsection \thesubsection \\
This is the title \thetitle
\end{document}

\titlelabelis for label format in sections and inferior levels, but you can use\titleformat, e.g.\titleformat{\chapter}[hang]{\centering\bfseries\huge}{\S\ Chapter \thechapter\ \S}{1em}{ --- }[\hrule]. Runtexdoc titlesecfor more information. – Fran Jan 10 '16 at 20:59