Digital literacy refers to the ability to use technology and digital tools to find, evaluate, create, and communicate information. The document discusses how the digital world has changed thinking, teaching, and learning. It describes qualities of digital natives, including how they think critically and solve problems by questioning, problem-creating, and finding information across different media in visual, oral, and aural forms. It emphasizes the importance of teaching digital natives skills like responsibility, discernment, and managing their online presence with the future in mind.