WAMP stands for Windows, Apache, MySQL, and PHP. It is a software stack used for developing web applications on a Windows operating system. Each component plays a crucial role: Apache is the web server that delivers web pages, MySQL is the database management system that stores data, and PHP is the programming language used to create dynamic web content. WAMP is popular among developers because it simplifies the process of setting up a local server environment. By using WAMP, developers can test their applications on their own computers before deploying them to a live server, making it easier to troubleshoot and refine their projects.