Brake fluid is a hydraulic fluid used in vehicle braking systems to transfer force and amplify braking pressure. There are two main types: petroleum-based and non-petroleum. Glycol-based fluids like DOT 3, DOT 4, and DOT 5.1 are most common. DOT 3 has advantages like absorbing less moisture and maintaining a higher boiling point longer. Brake fluid must be changed every two years to prevent moisture absorption from decreasing its boiling point and compromising the braking system.