TDD involves writing tests before code to verify functionality. The process is:
1. Write a test that fails without the target code implemented.
2. Write the minimum code required for the test to pass.
3. Refactor the code as needed to improve design while ensuring tests still pass.
The goal is to use tests to drive code development and prevent regressions, with tests providing feedback on potential design issues. TDD encourages writing code in small, testable units and helps developers learn through practice.