The Label Distribution Protocol (LDP) is a network protocol used to establish and maintain label-switched paths in a Multiprotocol Label Switching (MPLS) environment. It enables routers to communicate and share information about labels, which are used to direct packets through the network efficiently. LDP helps in creating a mapping between network routes and labels, facilitating faster data transmission. LDP operates by sending label mapping messages between routers, allowing them to exchange label information. This process ensures that data packets can be forwarded based on their assigned labels rather than traditional IP routing, improving overall network performance and reducing latency.