yep.. 1 way is just 1 speaker.. 2 way is 2 speakers. 3 way has 3 speakers. each individual speaker can't reproduce the entire frequency range possible, so they design speakers to reproduce only a certain frequency range. Thats why to get the entire spectrum you usually end up having tweeters, midrange speakers, low range speakers, and subwoofers for really low frequencies.
speakers that are 2 or 3 way simply build into the larger speaker, several smaller tweeters to cover a greater frequency range. Do they sound better? sure because they product a greater range of frequencies then only a 1 way. But to some extent they're not the best choice because since the speakers are built on top of one another, they interfere with each other as well and don't produce as good sound as if they were seperate speakers. Ideally you'd want only 1 way speakers throughout. Thats why you tend to see "component" speakers where the midrange and tweeter are seperate and include a small crossover. This combined with proper installation and orientation will produce the best sound.