Cells are the basic unit of life, with single-celled organisms like bacteria and multicellular organisms such as humans. Eukaryotic cells contain a nucleus and membrane-bound organelles, while prokaryotic cells are simpler, lack a true nucleus, and have structures like cell walls and ribosomes for protein synthesis. Key features of prokaryotic cells include their circular DNA located in the nucleoid and the presence of structures like pili and flagella for movement.