A Data Flow Diagram (DFD) visually represents the flow of information within a system using symbols like circles, arrows, and parallel lines. It shows how data enters and leaves the system as well as where data is stored. DFDs are broken into levels that depict increasing functional detail, starting with a context-level diagram representing the entire system as one process and external entities, then breaking the system into sub-processes at lower levels. Key elements are uniquely named and DFDs avoid logical decisions or excessive detail to clearly depict data flows.