The 16550 UART allows for asynchronous serial communication up to 1.5Mbps. It contains independent transmitter and receiver sections that allow for simplex, half-duplex, and full-duplex communication modes. The UART uses a programmable baud rate generator and 16-byte FIFO buffers to interface with processors. It is commonly used to control serial ports on PCs using two I/O address ranges. Programming involves initializing the line control register and baud rate generator, then performing the actual communication by reading and writing data using the FIFO and line status registers.