The `ORDER BY` clause is a fundamental part of SQL queries. It allows you to arrange the output of your queries in a specific order. This is crucial for presenting data in a meaningful way, such as listing customers by their last names in alphabetical order or displaying products by price from highest to lowest. The `ORDER BY` clause can be used with any SQL query, including `SELECT`, `INSERT`, `UPDATE`, and `DELETE` statements. When sorting, you specify the column(s) you want to order by, and you can choose to sort in ascending or descending order. Descending order is useful for identifying the largest values in a dataset, like finding the top-selling products or the highest-paid employees. It's important to note that `ORDER BY` operates on the result set after all other operations in the query have been performed.