Truth values are a way to determine the truth or falsity of a statement or proposition. In logic, every statement can be assigned a truth value of either true or false. For example, the statement "The sky is blue" can be evaluated as true on a clear day, while "2 + 2 = 5" is false. In formal logic, truth values are essential for constructing logical arguments and understanding their validity. They help in evaluating complex statements using logical operators like AND, OR, and NOT. By combining truth values, one can analyze the overall truth of more complicated propositions.