Loop optimization is a technique used in programming to improve the performance of loops, which are structures that repeat a set of instructions. By analyzing how loops operate, developers can make changes that reduce the number of iterations or the amount of work done in each iteration, leading to faster execution of code. Common methods of loop optimization include loop unrolling, where multiple iterations are combined into a single iteration, and loop fusion, which merges adjacent loops that operate on the same data. These strategies help minimize overhead and enhance the efficiency of programs, especially in computationally intensive tasks.