Vagrant allows developers to create and manage virtual development environments. It provides a standardized way to configure, provision, and share Virtual Machines across different environments. The document discusses how to install and configure Vagrant by selecting a hypervisor, downloading Vagrant, and editing the Vagrantfile to define VM boxes, providers, networks, shared folders, provisioning, and SSH configurations. Vagrant aims to bring sanity to developers, operators, and designers by enabling them to work on consistent environments and avoid issues with "works on my machine" bugs.