Sass can be used to easily create color schemes and variants by manipulating hue, saturation, and lightness values. HSL makes it simple to generate tints and shades of a color. Sass functions like scale-color() allow adjusting these HSL properties to produce related colors. Common color schemes like monochromatic, complementary, triad, and analogic can be coded by specifying base and secondary hues in Sass variables and mixing them. This allows designing flexible, themeable color palettes without hard-coding individual color values.