Polymorphism is the ability to represent one form in multiple forms and is classified into compile-time (function and operator overloading) and run-time (function overriding) types. Function overloading allows multiple functions with the same name but different parameters, while operator overloading enables custom functionality for operators. Function overriding allows a subclass to provide a specific implementation of a method that is already defined in its parent class, improving code readability and reusability.