Android services allow long-running tasks to perform work in the background independently of an application's user interface. There are two main types of services: started services which can perform operations indefinitely even if the starting component is destroyed, and bound services which offer a client-server interface between a component and the service. Services must be started with startService() or bound to with bindService() and have lifecycle callback methods like onStartCommand(), onBind(), onCreate(), and onDestroy(). The IntentService class simplifies started service implementation. Bound services can expose interfaces using Binder, Messenger, or AIDL to allow inter-process communication.