Pointers are a data type in C that store memory addresses as their values. Pointers allow programs to access and manipulate data stored in memory. Pointers add power and flexibility to the C language. A pointer variable contains the address of another variable. Pointer operators like * and & are used to dereference pointers and get the address of a variable. Pointers can be passed as arguments to functions to allow the functions to modify memory outside their local scope.