GNOME Terminal is a terminal emulator for the GNOME desktop environment that allows users to access a UNIX shell while using their graphical desktop. To open Terminal, users can search for it on the Dash or press Ctrl + Alt + T. The display prompt includes the username, computer name, and current directory. Basic commands demonstrated include pwd, ls, cd, touch, mkdir, rmdir, and cat. File permissions can be viewed and modified using ls -l and chmod. Ownership of files and directories can be changed with chown.