PhoneGap allows developers to write mobile apps using HTML, CSS, and JavaScript that are then packaged into native apps for various platforms. It works by embedding a webview component into a native container, providing a bridge between the webview and native platform APIs. Developers write their app code once using web technologies and PhoneGap handles packaging it as a native app for each target platform. Key features include using CSS3 for styling, JavaScript APIs for device functionality, and media queries for responsive design across devices.