Test-driven development (TDD) is a software development process where test cases are written before code to validate requirements. The TDD process involves short cycles of adding a test, making the test fail, writing code to pass the test, and refactoring code. Automated tests provide confidence to refactor and change code without breaking functionality. Unit tests isolate and test individual code units while feature tests simulate how a user interacts with the application. Code coverage metrics help ensure tests cover enough of the codebase, with higher coverage percentages generally indicating better test quality.