Table variables are a powerful tool in SQL for storing temporary data. Unlike permanent tables, they exist only during the execution of a batch or stored procedure. This means they are not stored in the database permanently, saving space and resources. They are particularly useful when you need to perform operations on a dataset that's only relevant within a specific block of code. For instance, if you need to filter data based on a condition and then use the filtered data for further calculations, a table variable can hold the filtered results temporarily. This approach can improve performance by avoiding the overhead of creating and managing a separate permanent table. Table variables are also useful for passing data between different parts of a stored procedure or batch. They can be used in place of temporary tables, but they are limited to the scope of the batch or stored procedure in which they are defined.