What does it mean to have a twisted bowel? Does it mean that your intestines are literally twisted?

Yes. Usually this is a developmental defect in whcih the intestine are not properly attached to the abdominal wall. The intestine can actually twist on itself and become blocked. If prolonged it can lead to loss of blood supply and death of that section of intestine.
It may. A "twisted bowel" also known as a volvulus can actually mean a twist in the intestine itself, but most concerning can be a "kinking off" of the blood supply to the intestine.