Pointer variables allow programmers to indirectly access and manipulate the memory addresses where variables are stored. Pointers must be declared with a data type and initialized by assigning the address of an existing variable using the address-of operator (&). Pointer variables can then be used to read from and write to the memory location of the variable being pointed to using indirection (*). Pointers enable operations like traversing arrays, passing arguments by reference, and dynamically allocating memory. Key pointer concepts covered include declaration, initialization, dereferencing, arithmetic, comparisons, NULL pointers, and their usage with arrays.