Operator overloading allows operators like + and - to be used with user-defined types in C++. Certain operators like = and [] must be overloaded as member functions, while others like friends and non-members can also be overloaded. Unary operators operate on a single operand, while binary operators require two operands. Overloaded operators are implemented via member functions, non-member functions, or friend functions depending on whether the left operand is of the class type. Strings can also be manipulated using overloaded operators by defining a string class with a character pointer and length.