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This joke is a classic example of a pun, a type of wordplay that relies on words sounding similar but having different meanings. The humor comes from the setup creating an expectation of a literal "nervous" tree, only for the punchline to deliver a specific type of tree whose name cleverly incorporates the idea of trembling. It's a play on the word "trembling" to describe both a state of anxiety and a characteristic of a particular tree species.
The real-world context that makes this joke work so well is the "trembling aspen" itself. These trees, also known as quaking aspens, are famous for their leaves that flutter and "quake" in even the slightest breeze. This distinctive movement is due to their unique leaf stems, called petioles, which are flattened and allow the leaves to pivot easily in the wind. So, while the joke imagines a tree feeling nervous, the trembling aspen literally lives up to its name, constantly seeming to shiver or tremble, making the pun unexpectedly accurate and delightful.