Variables in Python are essential components that allow programmers to store and manipulate data efficiently. They serve as named storage locations in memory, enabling the program to reference and modify values throughout its execution. In Python, declaring a variable is straightforward; you simply assign a value to a name using the assignment operator. The language’s dynamic typing feature means that you don’t need to specify the data type explicitly, as Python infers it from the assigned value. This flexibility makes variables a powerful tool for creating readable and maintainable code, facilitating various programming tasks and logic flows.