Homology modeling is a technique used to predict the 3D structure of a protein from its amino acid sequence by comparing it to proteins with similar sequences whose structures are already known. It involves searching a database for template structures, aligning the target sequence to the template, building a model by transferring 3D coordinates from the template to the target sequence, and validating the resulting model. Homology modeling works best when the sequence identity between the target and template is over 30% since protein structure is more conserved than sequence over evolution.