Linux is an open-source operating system created by Linus Torvalds in 1991. It evolved from the Linux kernel that Torvalds developed as a student. Linux uses a command line interface and shell, with popular shells including bash. The Linux file system organizes everything, including hardware devices, as files within a directory structure. Key directories include /bin for essential commands, /etc for configuration files, /boot for the kernel, /tmp for temporary files, /var for variable files, and /home for user files. In 1991, Torvalds' kernel combined with software from the GNU project to create a free operating system, addressing the goals of both.