Microformats are a set of simple, open data formats that allow web developers to embed structured information within HTML content. They use existing HTML elements and attributes to create a standardized way to represent data, making it easier for machines to read and understand the information on web pages. By using Microformats, websites can enhance their search engine optimization (SEO) and improve the way their content is displayed in search results. This structured data can help search engines like Google and Bing better interpret the context of the information, leading to richer search experiences for users.