Pointers allow variables to store memory addresses of other variables. A pointer contains an unsigned integer value representing the memory address, and its data type depends on the type of variable it is pointing to. For example, an integer pointer would point to an integer variable's memory address. Pointers work by using the ampersand (&) operator to get a variable's memory address, which is stored in the pointer. Then the pointer can be dereferenced using the asterisk (*) operator to access the value at that memory address.