Subqueries, also known as nested queries, are queries embedded within another SQL query. They are a powerful tool for retrieving specific data based on the results of a separate query. Subqueries can be used in various clauses of a larger query, such as the `WHERE` clause to filter data, the `SELECT` clause to retrieve data based on the results of another query, or even the `FROM` clause to create a virtual table from the results of a subquery. This allows for complex data manipulation and filtering that would be difficult or impossible with simple queries. Subqueries can be categorized into correlated and non-correlated subqueries. Non-correlated subqueries are independent of the outer query, while correlated subqueries depend on the outer query's data. Understanding the difference between these types is crucial for writing efficient and accurate SQL queries.