User stories describe functionality that is valuable to users from their perspective, not as technical specifications. They follow a Role-Action-Context format and involve cards for planning, conversations to flesh out details, and confirmations through testing. Stories should be independent, negotiable, valuable, estimable, small, and testable. Teams estimate story size in story points to help plan work for sprints. Tasks and acceptance criteria are created during sprint planning to clarify how a story will be implemented and tested.