Polar coordinates use r and θ instead of x and y, where r represents the radius or distance from a point to the pole, and θ represents the angle between the radius and the polar axis. To convert between rectangular and polar coordinates, r is calculated as the distance from the origin using the Pythagorean theorem, while θ is the angle measured counterclockwise from the polar axis. Polar graphs represent r as a function of θ, with θ as the independent variable instead of x as in rectangular graphs.