The V-Model is a software development lifecycle model where development and testing occur in sequential and inverse phases resembling the shape of a V. It is called the V-Model because the process looks like the letter V, with validation on the left side and verification on the right. The key phases include requirements analysis, design, coding, unit testing, integration testing, system testing, and acceptance testing. The V-Model allows testing to start early and to be conducted at each phase, in parallel with development. It is simple to understand but works best for smaller, well-defined projects where requirements are stable.