The righthand side of course counts the number of $n$-element subsets of $\{1,2,\dots,2n\}$.
Now let’s classify these $n$-element subsets by their largest elements. The largest element of such a set must be one of the numbers $n,n+1,\dots,2n$, so it must be of the form $n+k$ for some $k\in\{0,1,\dots,n\}$. Suppose that you want to choose an $n$-element subset of $\{1,2,\dots,2n\}$ whose largest element is $n+k$; you can do it by choosing $n+k$ and then choosing an $(n-1)$-element subset of $\{1,2,\dots,n+k-1\}$. There are $\binom{n+k-1}{n-1}=\binom{n+k-1}k$ ways to do this, and, as previously noted, $k$ can be any integer from $0$ through $n$, so there are $\sum_{k=0}^n\binom{n+k-1}k$ ways to choose an $n$-element subset of $\{1,2,\dots,2n\}$.
Added: A slightly different way to look at it: $\binom{2n}n$ is the number of ways to seat $n$ girls and $n$ boys in a row of $2n$ seats. Suppose that the first $n-k$ seats are occupied by boys and the next seat by a girl (so this is seat $n - k + 1$). That leaves $2n-(n-k+1)=n+k-1$ seats yet to be filled. There are $k$ boys not yet seated, so there are $\binom{n+k-1}k$ ways for them to choose seats. Since $n-k$, the number of boys at the beginning of the row can be anything from $0$ through $n$, $k$ can also be anything from $0$ through $n$, and the number of possible seatings is $\sum_{k=0}^n\binom{n+k-1}k$.