L1 Cache is a small, high-speed memory located inside the CPU that stores frequently accessed data and instructions. It is the first level of cache memory, designed to provide quick access to the processor, which helps improve overall performance. Because it is faster than both L2 Cache and main memory, the CPU can retrieve information more efficiently. The L1 Cache is typically divided into two parts: the instruction cache, which holds instructions for the CPU to execute, and the data cache, which stores data that the processor needs. This close proximity to the CPU allows for rapid data retrieval, reducing the time it takes to access information from slower memory sources.