HTML5 is the new standard for HTML that provides new semantic elements and APIs to create more engaging web experiences. Some key features include less code needed in page headers, more semantic HTML tags like <article> and <nav> to structure content, media elements like <video> and <audio> to embed multimedia, the canvas element to draw graphics, and web storage APIs like localStorage to store data on the client side. HTML5 development is a collaboration between the W3C and WHATWG to create a standard that reduces the need for plugins, has better error handling, and makes the web more device independent.