"Time value" can be used in several different contexts.

(1) In general, "time value" describes the concept that money received now is worth more than money received later. Even if adjustments are made for inflation, a dollar in hand now can earn interest or otherwise appreciate between now and the time a dollar in the future would be received.

(2) "Time value" also refers to the portion of an option's premium that reflects the value between the current date and the expiration date of the option. In theory, "time value" will decrease and eventually evaporate as the expiration date of the option approaches.