Base32 is a binary-to-text encoding scheme that represents binary data in an ASCII string format using a set of 32 different characters. It is designed to be more human-readable and easier to use in environments that may not handle binary data well. The character set includes uppercase letters A-Z and digits 2-7, avoiding characters that can be easily confused, such as 0 and O. This encoding is commonly used in applications like email and URLs, where special characters may cause issues. By converting binary data into a more manageable format, Base32 helps ensure data integrity and compatibility across various systems and platforms.