ACLs are lists applied to routers to control network access by filtering packets based on conditions like source/destination addresses, protocols, and port numbers. They can limit traffic to increase performance, provide traffic flow control, and provide basic network security. There are standard and extended ACLs, with extended ACLs providing more granular control by checking source/destination addresses and specific protocols and ports. Basic rules for ACLs include applying standard ACLs near the destination and extended ACLs near the source, processing entries sequentially from top to bottom, and filtering from specific to general.