WordPress hooks allow developers to modify the WordPress page lifecycle without changing core code. There are two types of hooks: actions and filters. Actions allow developers to add code at specific points during page loading, while filters allow modifying values by passing them through custom functions. Some examples given include changing the excerpt length on the home page using a filter hook, enqueueing custom scripts conditionally using an action hook, and overriding the main query on the home page using the pre_get_posts action. Hooks are essential for extending and customizing WordPress functionality without modifying core files.