jQuery is a JavaScript library that makes it easier to select and manipulate HTML elements and implement animations and AJAX requests. It works by using CSS selectors to select elements and then provides methods to hide, show, add or remove content from those elements. Some key features of jQuery include selecting elements, modifying CSS styles, handling events, animating properties and AJAX requests. The document provides examples of how to select elements, bind events, implement common animations and effects like fading and sliding, and manipulate HTML content.