Base64 encoding is a method of encoding binary data into a format that can be safely transported via email by representing the binary as text. It works by taking bits of data in groups of 6 bits and mapping them to a character in an ASCII character set, increasing the size of the encoded data by about 33%. While often confused as encryption, base64 is actually an encoding scheme used commonly to embed binary data like images or attachments into structured text formats like XML and SMTP email.