Ruby on Rails is an open-source web framework that favors convention over configuration for rapid development and sustainable productivity. It utilizes several key principles like convention over configuration, DRY (Don't Repeat Yourself), MVC (Model-View-Controller) architecture, RESTful design, and a well-defined directory structure to make code more predictable, understandable, and maintainable. The document also briefly discusses that Rails is database agnostic and can be hosted on various platforms like Heroku.