Web caching stores copies of frequently accessed web content like images, HTML files and JavaScript in temporary caches located near users. This improves website load times by serving content directly from caches instead of the original web server. There are different types of caches including browser caches on devices, proxy caches within networks, and CDN caches globally. Effective use of caching reduces server loads and bandwidth usage while improving user experience, though it requires addressing limitations like stale content and privacy concerns.