ER diagram stands for Entity Relationship Diagram. It displays the relationships between entity sets stored in a database using rectangles to represent entities, ovals to define attributes, and diamonds to represent relationships. ER diagrams help explain the logical structure of databases and are created using three basic concepts: entities, attributes, and relationships. They provide a preview of how database tables should connect and what fields will be on each table. ER diagrams are also translatable into relational tables, allowing databases to be built quickly, and help database designers and users understand the information contained within a database.