Floating-point numbers are a way to represent real numbers in computing, allowing for a wide range of values. They consist of three parts: a sign (indicating positive or negative), an exponent (which scales the number), and a fraction (or mantissa) that contains the significant digits. This format enables computers to handle very large or very small numbers efficiently. In programming, floating-point numbers are commonly used in calculations involving decimals, such as scientific measurements or financial data. However, they can introduce precision errors due to their binary representation, which may not exactly match some decimal values. Understanding this concept is crucial for accurate computations in fields like engineering and data science.