A Shader Model is a specification that defines the capabilities and features of shaders in graphics programming. Shaders are small programs that run on the GPU to control the rendering of graphics, allowing for effects like lighting, shadows, and textures. Different Shader Models correspond to different generations of graphics hardware, with each new model introducing more advanced features and optimizations. For example, DirectX and OpenGL are two popular graphics APIs that utilize Shader Models to enhance visual quality in video games and applications. As technology advances, newer Shader Models enable developers to create more complex and realistic graphics, improving the overall user experience.