SQL variables, also known as user-defined variables, are placeholders that store data during a SQL session. They are not part of the database structure itself; their existence is limited to the current session. Think of them as temporary containers for values that you can use in your queries. They are particularly useful for creating dynamic queries where you want to change parts of the query based on input data. For example, you might use a variable to hold a user's input for a search term. Variables are also important for parameterized queries, which improve security by preventing SQL injection vulnerabilities. They allow you to separate the query structure from the data values, making your code more readable and maintainable. Variables can be declared and assigned values within a specific SQL statement or block of code. They are often used in conjunction with stored procedures and dynamic SQL statements.