Uncompressed data refers to information that is stored in its original form without any reduction in size or quality. This means that every bit of data is preserved, allowing for the highest fidelity in audio, video, or image files. Examples of uncompressed formats include WAV for audio and BMP for images. Using uncompressed data can result in larger file sizes compared to compressed formats, which reduce size by removing some information. While uncompressed data is ideal for professional applications where quality is paramount, it may not be practical for everyday use due to storage limitations.