Subqueries, also known as nested queries, are SQL queries embedded inside another SQL query. They are a powerful tool for retrieving data that meets specific criteria based on the results of another query. Subqueries can be used in the `SELECT`, `FROM`, `WHERE`, and `HAVING` clauses. They are particularly useful when you need to filter data based on values calculated from another table or when you need to perform complex calculations within a single query. For example, finding all customers who have placed orders with a total value exceeding the average order value. Subqueries can be used to improve query efficiency and readability, especially when dealing with complex data relationships.