Normalization is the process of structuring a database to minimize redundancy and dependency by organizing data into tables and relating those tables via their keys. It involves removing redundant data and storing each unique piece of data only once. The goal is to simplify data maintenance and ensure data consistency. Database normalization is achieved by applying certain forms or normal forms, including 1st normal form, 2nd normal form, 3rd normal form, and BCNF, with each form addressing different types of dependencies and anomalies.