VirtualBox is Oracle’s answer to host-based virtualization — a purchase they made from Sun Systems in 2010 to (hopefully) compete in the same market with VMware’s Workstation. VirtualBox is a free and open-source solution that works with all x86 platforms including Windows, Mac, Linux, and Solaris.
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This subreddit is not endorsed or sponsored by Apple Inc. Installing OS X on non-Apple hardware is against Apple's EULA. It's not 'illegal' in the 'you're going to be visited by the police and arrested' sense, but theoretically they could sue you. It's definitely not supported in any case. If you're making a VM on Apple hardware, on the other hand, that's totally okay and acceptable. ETA: Since there seems to be confusion, it's certainly possible to install it on non-Apple hardware (there are guides online for using VMWare to do it, which is the easiest solution I've found) but doing so is in violation of the EULA.
It's unlikely that you'll be sued, but technically it can happen. As you were asking if it's illegal, I wasn't sure if you meant 'is it possible to do this?' Or 'am I allowed to do it?'