Three tier architecture separates an application into three logical tiers - the presentation tier, logic tier, and data tier. It evolved from single tier architectures with all components on one machine to dual tier client-server models and finally three tier architecture. Three tier architecture offers advantages like scalability, reusability, improved security and data integrity by separating the user interface, business logic, and data access functions across multiple servers. It allows for more flexibility and growth than earlier architectures. While more complex to implement, it provides performance, manageability and security benefits over two tier architectures.