It is mentioned in Chamber of Secrets that it does. Basically, "Mudblood" is a term used to describe a witch or wizard who was born into a Muggle family. Some members of the magical community consider this to mean that the person's blood is unpure, hence the name "Mudblood".
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There are many terms used in the Harry Potter series to describe magical and non-magical people. Magical people are referred to as witches and wizards. Non-magical people are referred to as muggles. A pure blood has no trace of muggles in his ancestry. All of his family, including both parents are wizards. (Ron, Sirius, Draco, Neville) A half blood has one muggle-born parent and one wizard parent. (Harry, Voldemort) A mudblood is a derogatory term used to describe someone who is born with muggle parents, but are born with the ability to perform magic. (Hermione, Lily Potter) A squib is someone who has wizard parents but does not have the ability to perform magic. (Argus Filch, Dumbledore's sister Arianna.)
blood
It is when you have sex with someone and then call them yours ie your boyfriend/girlfriend.
Hermione was tortured in Malfoy Manor by Bellatrix Lestrnge for several reasons. One: Bellatrix wanted to know how they had the Sword of Godric Gryffindor that was supposed to be locked up in her vault at Gringotts. Two: She was a mudblood, so she was the one chosen to be tortured for answers.
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