Error detecting and correcting codes are used to detect and correct errors during data transmission. Hamming codes allow for single bit error correction and double bit error detection. Hamming codes work by assigning parity bits to specific bit positions, with each parity bit checking a set of data bit positions. If a single bit error occurs, the receiver can detect which bit is in error by checking the parity bits and make the correction. Hamming codes provide an easy way to detect and correct single bit errors during data transmission.