The UNIX operating system consists of three main layers - the kernel layer, shell layer, and utilities/applications layer. The kernel handles processes, memory, files, devices, and networking. The shell sits between the user and kernel and interprets commands. Utilities and applications make up the top layer and include programs like word processors. UNIX is a portable, multiuser, multitasking operating system used widely by programmers, businesses, universities, and governments for its stability and ability to perform many tasks simultaneously.