Resonance in an RLC circuit occurs when the capacitive and inductive reactances cancel each other out. This happens at a specific frequency called the resonance frequency. In a series RLC circuit, resonance occurs when the inductive and capacitive reactances are equal, resulting in maximum current and minimum impedance. In a parallel RLC circuit, resonance occurs when the impedance is at its maximum. Resonant circuits have applications in devices like Tesla coils and radio tuners due to their ability to selectively respond to specific frequencies.