Timing diagrams are used to graphically represent the execution time of instructions. They show the time taken by each instruction in T-states. The 8085 microprocessor has 5 basic machine cycles - opcode fetch, memory read, memory write, I/O read, and I/O write. Timing diagrams are shown for sample instructions like MVI B, 43H, INR M, and STA 526AH illustrating the machine cycles used.