The Taylor series provides a means to approximate a function value at one point based on the function value and its derivatives at another known point. It states that any smooth function can be approximated as a polynomial. The Taylor series expansion allows estimating the value of a function like x^100 at a point like x=20 by using the known value and derivatives of the function at another point, like x=1. Increasing the order of the Taylor series approximation or decreasing the step size between points improves the accuracy of the approximation.