Charles Darwin developed the theory of natural selection after observing variations in finch beaks on the Galapagos Islands. Natural selection has four parts: overproduction of offspring, inherited variation of traits, struggle for survival, and successful reproduction of adapted organisms. Darwin lacked an understanding of genetics and the source of variations, but we now know traits are inherited from parents and variations arise from gene combinations. Natural selection can act through factors like hunting, resistance, and competition to change population levels over time and potentially lead to the formation of new species.