Python's collections module is a built-in library that provides specialized container data types beyond the standard list, tuple, and dictionary. It includes useful classes like Counter, which counts hashable objects, and deque, a double-ended queue that allows fast appends and pops from both ends. This module also features namedtuple, which creates tuple subclasses with named fields, and OrderedDict, which maintains the order of keys as they are added. These data structures enhance the functionality and efficiency of data handling in Python, making it easier for developers to manage and manipulate collections of data.