WP-CLI is a command line interface tool that allows users to manage WordPress from the command line. It is useful for developers, theme designers, and server administrators. To use WP-CLI, one needs SSH access and a "UNIX-like" environment like Linux, OSX, or Cygwin. Installing WP-CLI involves downloading the phar file, setting permissions, and moving it to a useful location like /usr/local/bin/wp. Common commands include installing and managing plugins, interacting with the database, searching and replacing content, generating test content, and more.