The Laplace transform allows solving differential equations using algebra by transforming differential operators into algebraic operations. It transforms a function of time (f(t)) into a function of a complex variable (F(s)), allowing differential equations describing systems to be solved for variables of interest. Key properties include linearity, time and frequency shifting, and relationships between derivatives, integrals, and the Laplace transform that enable solving differential equations by taking the transform, performing algebra, and applying the inverse transform.