VLANs are virtual broadcast domains that segment traffic on a layer 2 network. Each VLAN is like a separate virtual bridge within a switch. VLANs can span multiple switches using trunk links, which carry traffic for multiple VLANs. ISL is a Cisco proprietary protocol that maintains VLAN information as traffic passes between switches, allowing traffic to enter the correct VLAN. It functions at layer 2 and adds a 30 byte header to each frame. VTP maintains VLAN configuration consistency across switches by propagating changes to all switches in a VTP domain.