Here's why:
* It contains a preposition: "on"
* It has an object: "the table"
Prepositional phrases act like adjectives or adverbs, adding information to a sentence. For example:
* The book is on the table. (Here, "on the table" tells us the location of the book.)
* She walked on the table. (Here, "on the table" modifies the verb "walked" and tells us where she walked.)
So, "on the table" is a phrase, but it needs to be part of a larger sentence to have a complete meaning.