meaning of te amo
Yes, it means "I love you".
It is one of two ways to say "I love you" in Spanish.
Te quiero - This comes from the verb "querer" meaning to love or to want. Te quiero can mean "I love you" or "I want you". It is used for puppy love, friends, and relatives.
Te amo - This comes from the verb "amar" meaning to love. It is used in dramatic situations, such as the mushy love you see on soap operas. Also, it is used for the deep love shared between a couple.
I love this question, because it begs the question in English: What does "I love you" mean?
This is one of my favorite fun lessons to teach my students.
In order of desire:
Me gusta el chocolate. I like chocolate.
Me encanta la música de Shakira. I love Shakira's music.
Quiero galletas. I want cookies.
Necesito agua. I need water.
Me caes bien. I like you. (Literally: You fall well to me.)
Me gustas. I like you. (Especially: I find you physically attractive.)
Me encantas. You enchant me. (I have NEVER heard nor seen this phrase used by a native speaker. Therefore I would avoid using it.)
Te quiero. I love you. This is an all purpose love. It can be used with mothers, platonic friends, and romantic lovers. If you are in a particularly amorous mood and get the right glint in your eye it could also mean, "I want you." Note, you can also say "Te necesito" which has no amorous undertones unless you want it to. It simply means, "I need you."
Te amo. I looooove you! (Again this can be used in different contexts. I've heard a little boy tell his mother, "Te amo mamí" and I've heard a woman tell her husband, "Te amo.")
Here is a link to another thread that might interest you: using gustar with people