Animal farm is an allegory for the Russian Revolution as it provides the setting where the animals' revolt against their owner.
It should be noted that an allegory simply means a poem or story that can be used to reveal a hidden meaning.
Many of the events of Orwell's novel parallel those of the Russian Revolution. Manor Farm is a model of Russia, and old Major, Snowball, and Napoleon represent the dominant figures of the Russian Revolution. Mr. Jones is modeled on Tsar Nicholas II, the last Russian emperor.
In this case, the animal farm is an allegory for the Russian Revolution as it provides the setting where the animals' revolt against their owner like the people of Russia.
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