Hard drives are magnetic storage devices that store data permanently even when power is disconnected. They contain spinning platters coated with magnetic material and read/write heads that can detect and modify the magnetism of the platters to store and retrieve data. Hard drives connect to the motherboard via IDE or SATA interfaces and are installed in drive bays in the computer case. Proper installation requires setting jumpers, connecting power and data cables correctly, and securing the drive with screws.