Normalization is a process performed by database designers and analysts to organize data in a database. It involves removing redundant data from tables and organizing the remaining data into tables to avoid data anomalies. The document provides examples of normalization forms including second normal form (2NF) and third normal form (3NF) and asks test questions related to when a relation is in 2NF versus 3NF and which normal form a relation is in if all non-key attributes depend on the primary key.