An equivalence relation is a binary relation that is reflexive, symmetric, and transitive. To determine if a relation is an equivalence relation, one must check that for any elements a and b, a is related to a (reflexive), if a is related to b then b is related to a (symmetric), and if a is related to b and b is related to c, then a is related to c (transitive). To find the equivalence classes, one identifies all element pairs in the relation and finds those that contain a specific element like 0.