LVM (Logical Volume Manager) allows managing disks in a different way by creating virtual disks called logical volumes from physical partitions. It does not have the same limitations as physical disks. LVM concepts include physical volumes representing physical partitions, volume groups which act as virtual disks by combining multiple physical volumes, and logical volumes which are partitions within volume groups that can be resized and moved independently of physical storage. LVM provides flexibility in managing storage and can be used with other technologies like encryption and RAID.