The L2 Cache (Level 2 Cache) is a type of memory located on or near the CPU (Central Processing Unit) that stores frequently accessed data and instructions. It acts as a bridge between the faster L1 Cache and the slower main memory (RAM), helping to speed up data retrieval and improve overall system performance. Typically larger than L1 Cache, the L2 Cache can hold more data but is slightly slower. It plays a crucial role in reducing the time the CPU takes to access information, allowing for smoother multitasking and faster execution of programs.