ELISA involves an antigen-antibody reaction between a solid surface like a microwell plate coated with the target antigen and an enzyme-labeled antibody specific to that antigen. There are four main types of ELISA - direct, indirect, sandwich, and competitive - which differ in the order and number of antibodies used. ELISA is commonly used to detect antigens and antibodies and has applications in fields like medical diagnostics, food testing, and environmental monitoring.