Normalization is a technique for organizing data in a database to minimize redundancy and dependency. It involves decomposing tables to satisfy certain normal forms. The document discusses the three normal forms - 1NF, 2NF, and 3NF. 1NF focuses on eliminating repeating groups, 2NF removes partial dependencies, and 3NF removes transitive dependencies. The process involves testing relations against normal form requirements and decomposing relations that fail the tests.