Binding Theory is a framework in linguistics that examines how different elements in a sentence relate to each other, particularly focusing on pronouns and their antecedents. It helps explain how words like he, she, or it refer back to specific nouns in a sentence, ensuring clarity in meaning. The theory is divided into three main principles: Principle A states that reflexive pronouns must refer to a noun within the same clause, Principle B indicates that non-reflexive pronouns must refer to a noun outside their clause, and Principle C addresses the reference of names and definite descriptions.