The DHT11 sensor measures temperature and humidity using a thermistor and capacitive humidity sensor. It has two parts - one for temperature measurement using a NTC thermistor whose resistance changes with temperature, and one for humidity measurement using a capacitor whose value changes with humidity. The sensor outputs digital serial data for temperature and humidity and has a range of 0-50°C and 20-90% humidity with an accuracy of ±1°C and ±1% respectively.