Modular programming involves breaking down a program into individual components called modules that can be independently programmed and tested. The document discusses modular programming concepts in QBASIC, including defining main modules and sub modules, and the benefits of modular design such as easier debugging and maintenance. It also explains the different types of procedures in QBASIC - SUB procedures, which perform tasks without returning values, and FUNCTION procedures, which return a single value. Important steps for building SUB and FUNCTION procedures like parameter passing techniques and variable scoping are outlined.