Bipolar Junction Transistors (BJT) have three layers - an emitter, base, and collector - with two p-n junctions. In an NPN transistor, the emitter-base junction is forward biased, injecting electrons into the base, while the collector-base junction is reverse biased, sweeping electrons from the base into the collector. There are three main configurations - common base, common emitter, and common collector - depending on whether the base, emitter, or collector is common to both the input and output. Key parameters like input resistance, output resistance, voltage gain, and current gain can be determined from the input and output characteristics graphs of each configuration.