Sinatra is a DSL for building web applications in Ruby with minimal code and setup. It is a library rather than a framework, allowing developers to structure their application as needed rather than conforming to the structure of the library. The document outlines the fundamentals of building Sinatra applications, including routes, parameters, views, helpers, configurations, sessions and testing. It also covers more advanced topics like modular applications and using Sinatra as middleware in a Rack application. Example use cases mentioned are prototyping web apps, building APIs, and developing HTML5 mobile apps.