ASP.NET is a web application framework developed by Microsoft that allows programmers to build dynamic web sites, web applications, and web services. It is built on the .NET Framework and runs on the Common Language Runtime (CLR), allowing programmers to write code using supported .NET languages like C#, VB.NET, and C++. Key characteristics of ASP.NET include using pages with a code-behind model, directives, user and custom controls, a rendering technique that builds a control tree, and various state management options. Benefits include easier maintenance compared to classic ASP due to separation of code and content, built-in validation controls, and faster performance at large volumes.