Cells are the basic unit of life and come in two main types - prokaryotic and eukaryotic. Prokaryotic cells like bacteria lack membrane-bound organelles and have no nucleus, while eukaryotic cells like animal and plant cells contain organelles and a membrane-bound nucleus. Key differences include prokaryotes having a cell wall and single circular chromosome while eukaryotes may lack a cell wall and have multiple linear chromosomes with histones. The development of the microscope allowed scientists like Hooke, van Leeuwenhoek, and Schwann to observe cells and establish that all living things are made of these basic cellular units.