FreeRTOS is an open source real-time operating system that allows for multitasking on microcontrollers using preemptive scheduling. It uses queues to allow tasks to communicate by sending messages between each other, and semaphores to synchronize this communication. Tasks in FreeRTOS can be in one of four states: running, ready, blocked, or suspended. The FreeRTOS code handles task creation, scheduling, and maintenance using around 9,000 lines of code, with additional hardware-dependent code for the specific microcontroller.