A two-port network has four terminals labeled A, B, C, and D, with A and B as the input ports and C and D as the output ports. The voltages and currents at the input and output ports are related by ABCD parameters, which are constants that describe the network's performance. The ABCD parameters can be represented in a transmission matrix and are used to analyze electrical networks and determine input/output voltages and currents. Specific ABCD parameters are defined for open circuit, short circuit, and symmetrical network configurations.