Kubernetes works using a cluster architecture with master nodes overseeing control plane components like the API server, etcd, scheduler, and controller manager. The API server exposes a REST API to manage resources. Etcd stores cluster state including pod, service, and resource information. The scheduler assigns pods to worker nodes based on availability and rules, while the controller ensures the desired cluster state is maintained by restarting pods and updating configurations. Worker nodes run pods and provision resources like CPU and memory. Kubernetes concepts include pods, services, deployments, and replication controllers to manage containerized applications at scale.