Cartesian coordinates use a grid system to precisely locate points in space. A point is identified by its x and y coordinates, which indicate the distance from the origin point along the x-axis and y-axis. For example, the point (3,2) is located 3 units to the right of the origin along the x-axis and 2 units above the origin along the y-axis. The axes divide the plane into four quadrants, with points falling into different quadrants based on whether their x and y values are positive or negative. Cartesian coordinates provide a way to pinpoint locations using simple numbers.