A stored procedure is a set of precompiled SQL statements that are stored in a database. They can be executed as a single unit, allowing for efficient data manipulation and retrieval. Stored procedures help reduce the amount of code needed for repetitive tasks and can improve performance by minimizing the amount of data sent between the application and the database. Using stored procedures also enhances security, as they can restrict direct access to the underlying tables. This means that users can execute the stored procedure without needing permission to access the data directly. Overall, stored procedures are a powerful tool for managing database operations effectively.