Files in Python can be used to read data from disk files into a Python program and write data from a Python program back to disk files. There are two main types of files: text files, which store data as characters, and binary files, which store data in the same format as memory. Common file operations in Python include opening, reading, writing, and closing files. The open() function is used to open a file and return a file object, and the close() method closes the file and releases it for other applications. The with statement provides a convenient way to ensure files are closed after use.