Stacks are last-in, first-out data structures that can be implemented using arrays or linked lists. Key operations on stacks include push to add an element, pop to remove an element, and peek to access the top element without removing it. Stacks have many applications, including expression evaluation, backtracking, reversing strings, and solving puzzles like the Towers of Hanoi. Hardware stacks are also commonly used to allocate memory and access registers in computer architectures.