Room provides an abstraction layer over SQLite to allow fluent database access while harnessing the full power of SQLite. It handles concerns like caching relevant data to access when offline and syncing changes to a server. There are three major Room components: the Database class that holds the database connection, Entities that represent tables, and DAOs that contain methods for database access. Room simplifies tasks like defining schemas, inserting/updating/deleting data, and handling schema changes through migrations.