A light-year is the distance light travels in one year. If a star is 100 light-years away, the light reaching us now began its journey roughly 100 years ago. We are seeing the star as it was when that light left.
This is a limit on the arrival of information, not a delay caused by the telescope. A more powerful telescope may collect fainter light, but it cannot make newly emitted light arrive instantly. Distance and look-back time are closely related in this nearby-star example.