DataWeave is a data transformation language that can be used within Mule to transform data between different formats. In Mule, the DataWeave transformer allows writing DataWeave code to transform the incoming message. It provides an editor interface with input, transform, and output sections to work with the data. The transform section is where the DataWeave code for transformations is written. Multiple outputs can be defined by adding new tabs in the output section. DataWeave expressions can also be used elsewhere in Mule flows using the dw() function.