The Java Virtual Machine (JVM) is a software emulation of a hypothetical computing machine that executes Java bytecodes, licensed by Sun Microsystems, with strict testing and core class modification rules. It supports various environments, managing threads, memory, and automatic garbage collection, utilizing a stack model for execution and a method area for storing bytecodes. Built to work across multiple operating systems, the JVM addresses limitations such as a 32 KB method size and 256 local variables per stack.