A definite integral $\int^b_a{f(x)\,dx}$ can be interpreted as the area under the curve $f(x)$ bounded by $x=a$ and $x=b$, as shown by the shaded area in the following diagram:

One way to approximate the area (and therefore the integral) is to split the area under the curve into $n$ thin rectangles of equal width $\delta x = \frac{b-a}{n}$, and sum up the area of them.

The height of the $k$th rectangle will have a height $x_k$, where (e.g.) $x_k=(k-1)\delta x$ (I've assumed that the top left corner of each rectangle lies on the curve. This is not important if $n$ is infinite.) Therefore, the area of the $k$th rectangle is $f(x_k)\,\delta x$. The sum of the area under the curve will be the sum of all the rectangular areas, i.e.:
$$\sum_{k=1}^n {f(x_k)\,\delta x}$$
This is only an approximation of the area under the curve. However, the approximation improves as the number of rectangles increase. In fact, it becomes exact as $n\rightarrow \infty$. Noting that the area under the curve is equal to the definite integral, it can be seen that:
$$\int^b_a{f(x)\,dx}=\lim_{x\rightarrow\infty}\sum_{k=1}^n {f(x_k)\,\delta x}$$
Substitute my $f(x)$ for your $\sqrt{1+\left(f'(x)\right)^2}$ and that should show how the last two steps were made.