Magic was a catch-all term referring to any of a number of supernatural techniques or occult teachings outside of conventional Forcepowers. It was thought that magic allowed to manipulate aspects of the reality in order to influence events.
"Magic is an art of patience. The study of the natural ways involves many years of the strictest devotion. Terrible things can happen to a young wizard who foolishly misuses his knowledge."
The exact nature of magic remains in dispute among philosophers, as does its relationship to the Force proper. It is possible that all "magic" traditions were simply different methods of accessing the same Force, or were emanations of different aspects of it. More so than the Force, magic potency could be trapped in artifacts or locations—but again, this may be just due to different methods of accessing and using the Force.
The term was also sometimes mistakenly used by primitives or less-informed people to refer to the Force powers of mainstream Jedi and Sith, who were likely to be called "wizards" and their abilities attributed to "magic." The Rakata for example referred to Revan's powers as magic, much to the dismay of Revan, who tried to explain the difference to them. Han Solo also referred to Obi-Wan Kenobi's powers as "magic."
The exclusive use of real-life occult terms (witch, mage, prophet, warlock, alchemy, cult) to refer to Sith organizations or entities creates a parallel between an orthodox religion (the Jedi) and a cult (the dark side).
A connection of fantasy magic and the Force has been "attempted" during an April Fools' joke which wanted the midi-chlorians originate from the "planet Andowyne," the fantasy world of Willow.