Socket.io is a Node.js module for real-time data exchange between a server and client. It allows for real-time communication using various transport methods like WebSocket. Socket.io avoids unnecessary requests, unlike traditional polling. It works across browsers and platforms. To use Socket.io, install it on the server, code event handling and signaling on both the server and client-side JavaScript. When an event occurs, like logging in, data can be emitted and received in real-time.