Stacks are a special type of list where insertions and deletions only occur at one end, called the top. There are two main types - static stacks have a fixed size and are implemented as arrays, while dynamic stacks can grow as needed and are implemented as linked lists. Common stack operations include push to insert at the top, pop to remove from the top, and functions to check if the stack is empty or return the top element. Stacks are useful data structures with LIFO (last in, first out) behavior and have various applications like implementing function call stacks in compilers.