Here is an overly basic and simplistic reference to phases of recording.
Phase 1 - Pre-Productiom
This is writing songs, preparing arrangements, etc and if the recording project is a "professional" or "label" release could also include choosing musicians, producers, studio, setting a budget, etc.
Phase 2 - Tracking
This is the actual recording - or "laying tracks". This is the performance of material and capturing the performance on some recoding media (tape, hard disk, etc). Often this can be broken down to 2 sub- phases
Base tracks (or rhythem tracks) - normally drums, bass guitar, rhythem guitar, etc.
Over dubs - This would be recoding vocals, lead guitar etc. over "base tracks" that were previously recorded
Phase 3 - Mixing
This is the process of taking all the recorded tracks and "mixing" then to get volume levels proportionate and would also include adding audio processing (reverb, EQ, etc)
Phase 4 - Mastering
This is were the song order is established, where the volume levels and EQ levels for each song are set (so all the songs sound like a consistant recording. This is also where the overall recording gets whatever processing is required to establish the recording to a specific CD standard....and/or to make the recording "radio ready"
While effects can be added at any point during tracking and mixing - it is normally best to track "dry" (without effects) - because you can't remove effects that are already recorded - so it's better to add later. Notable exceptions to this would be 1) adding compression to control the volume peaks while tracking - in particular on vocals, drums and bass guitar 2) adjusting EQ while tracking to get the tones you want - although it is always better to work on tone before tracking, to track the cleanest, preferred tone, rather than trying to tweak something 3) guitar - many guitar players want to dial in "their sound" and have it tracked and if that is what it takes to get a good guitar sound, so be it.