An identifier in Java is a name given to classes, methods, variables, and labels. There are 7 rules for defining valid Java identifiers: 1) They can contain letters, numbers, underscores, and dollar signs. 2) They cannot start with a number. 3) Java is case sensitive so identifiers like number and Number are different. 4) There is no length limit but more than 15 characters is not recommended. 5) Reserved words like if cannot be used. 6) Predefined class and interface names can be used but it is not good practice.