An embedded system is a specialized computer hardware system with software for specific tasks, which can be independent or part of a larger system. They exist in various forms, including small scale, medium scale, and sophisticated systems, and have characteristics such as single-functionality, tight design constraints, and real-time operation. Key components include sensors, processors, and actuators, with software often written in high-level programming languages like C or C++, and development tools are employed to streamline the coding process.