Stem cells are unspecialized cells that can differentiate into other cell types. They have two key characteristics - differentiation and self-regeneration. Different types of stem cells exist that can differentiate into various numbers of cell types. In human development, totipotent stem cells like zygotes differentiate to form the whole pool of stem cells needed to develop the body's parts. Understanding stem cell roles in development points to their potential for regenerating damaged adult organs and tissues.