Sinatra is a DSL for building web applications in Ruby that emphasizes a minimalist approach. It is not a full-fledged framework and does not enforce particular structures. Key characteristics include its flexible nature, suitability for APIs, and simple ecosystem utilizing HTTP verbs, Rack middleware, and templating options like ERB. Popular companies using Sinatra include GitHub, Heroku, BBC, and thoughtbot. The document then covers basic Sinatra usage like routing, templates, and deployment to Heroku.