An instruction code consists of an operation code and operand(s) that specify the operation to perform and data to use. Operation codes are binary codes that define operations like addition, subtraction, etc. Early computers stored programs and data in separate memory sections and used a single accumulator register. Modern computers have multiple registers for temporary storage and performing operations faster than using only memory. Computer instructions encode an operation code and operand fields to specify the basic operations to perform on data stored in registers or memory.