PHP originated as 'Personal Home Pages' but now stands for 'PHP Hypertext Processor'. It is a scripting language commonly used for web development and allows embedding scripts in HTML pages. PHP is a loosely typed, procedural language with C-like syntax. It has an extensive function library that provides functionality like string handling, mathematics, file input/output, and database interaction. PHP uses a three-tier architecture with the PHP script running on a web server and connecting to databases and other services.