Vi has two modes: command mode and insert mode. Command mode is for issuing commands like moving the cursor, saving files, finding/replacing text, and copying/pasting. Insert mode is for inserting text. You switch between the two modes using keyboard shortcuts like Esc or Ctrl-[ to exit insert mode. Common commands in command mode include hjkl to move, x/dd to delete characters/lines, u to undo, and p to paste. Search and replace uses regex, and files can be saved, quit, or opened with commands like :w, :q, :e.