Basically, with prepared statements the data coming in from a potential hacker is treated as data - and there's no way it can be intermixed with your application SQL and/or be interpreted as SQL (which can happen when data passed in is placed directly into your application SQL).
This is because prepared statements "prepare" the SQL query first to find an efficient query plan, and send the actual values that presumably come in from a form later - at that time the query is actually executed.
More great info here: