The Reynolds number is used to identify the type of fluid flow in a pipe as either laminar or turbulent. It is a dimensionless quantity that represents the ratio of inertial forces to viscous forces. A Reynolds number below 2100 indicates laminar flow, above 4000 indicates turbulent flow, and between 2100-4000 is the critical transition region. It was first introduced by George Stokes and developed by Osborne Reynolds to characterize fluid flow and the transition between flow patterns.