A heap is a special tree-based data structure where the tree is a complete binary tree. There are two types of heaps: a max-heap where the root node has the greatest key, and a min-heap where the root node has the minimum key. Operations on heaps include insertion and deletion of nodes in O(log N) time and peeking the max/min element. Heapify is the process of building the heap from an array by comparing nodes to ensure the heap property is maintained.