Inheritance allows classes to inherit properties from parent classes to promote code reuse. A child class inherits the parent's data members and functions and can also define its own implementation of parent functions. Python supports multi-level inheritance where a class can inherit from another derived class, as well as multiple inheritance from multiple parent classes. The issubclass() and isinstance() functions check class relationships and object types respectively. Method overriding allows child classes to provide specific implementations of parent class methods. Data abstraction in Python uses double underscores to hide attributes from external access.