Hive is a lightweight NoSQL database that can be used to store data locally in Flutter apps. It uses a key-value format to store data in boxes, which can be opened, written to, read from, and closed. Type adapters allow Hive to support common data types like strings, integers, maps and lists. Hive provides fast performance for basic CRUD operations and encrypted storage of sensitive data. It is best suited for storing non-relational data like cart contents, messages, and user profiles, while a database like SQLite may be preferable for data with complex relations.