Chapter 12 of 'Operating System Concepts' discusses disk structure and management, detailing the mechanisms of hard disks, seek and latency times, and disk scheduling algorithms such as FCFS, SSTF, SCAN, and C-SCAN. It also covers the management of bad blocks using techniques like sector sparing and sector slipping, along with the processes for low-level formatting, logical formatting, and swap-space management. The chapter emphasizes the importance of efficient disk scheduling and the handling of errors to ensure effective utilization of disk resources.