Varnish is a reverse proxy cache that is designed to accelerate HTTP-based websites. It uses a domain-specific configuration language called VCL to define backend servers, caching rules, and other settings. Key aspects of the Varnish configuration covered include backend definitions, directors, vcl_recv for caching rules, vcl_hash for object identification, and vcl_fetch for backend object handling. The document discusses using Varnish to cache the homepage of a website called KeezMovies, addressing challenges of geolocation, analytics cookies, and non-idempotent requests.