IPv4 uses a datagram format with a header and data. The header contains information for routing and delivery and is 20-60 bytes. It includes fields for the version, length, identification, fragmentation, protocol, and source/destination addresses. Datagrams can be fragmented into smaller pieces if their size exceeds the MTU of a network. Fragments are reassembled at the destination using the identification field. The time to live field limits the number of hops a packet can make to prevent endless routing.