DHCP (Dynamic Host Configuration Protocol) is a standard protocol that allows devices on a network to obtain IP addresses and other network configuration parameters automatically from a DHCP server. The DHCP client-server model involves clients broadcasting requests and servers responding with offers of IP addresses and network information. Servers track IP address leases in databases to allow for dynamic allocation and recycling of addresses over time as clients join and leave the network. DHCP supports both static and dynamic allocation of IP addresses to provide flexibility in network configuration.