IEEE 754 is a standard for floating-point arithmetic used in computers to represent real numbers. It defines formats for single and double precision, allowing for efficient storage and calculation of numbers with fractional parts. This standard helps ensure consistency and accuracy in numerical computations across different computing systems. The IEEE 754 standard specifies rules for rounding, handling special values like infinity and NaN (Not a Number), and provides guidelines for operations such as addition, subtraction, multiplication, and division. By adhering to this standard, developers can create software that behaves predictably when performing mathematical calculations.