Lipids are organic compounds formed from fatty acids and alcohols. They are insoluble in water but soluble in organic solvents. Lipids serve important functions like energy storage, cell signaling, and transporting fat-soluble vitamins. They are classified into simple lipids like triglycerides and waxes, compound lipids containing additional substances like phospholipids and glycolipids, and derived lipids formed by hydrolysis of other lipids. Some clinical implications of lipids include obesity, atherosclerosis, and phynoderma.