XML is a markup language that allows for structured data storage and transport. It became popular as a data exchange format and was influenced by SGML. XML files must follow syntax rules like having a single root element, properly nested tags, and quoted attribute values. XML Schema (XSD) files can define the structure and validate XML content by specifying elements, attributes, and data types. XML can be processed using DOM which represents it as a tree structure or SAX which parses it sequentially through events.