The BIOS is firmware that initializes hardware and allows an operating system to load. It is the first code run when a PC powers on. The BIOS identifies components, runs tests, and sets the hardware state. It provides an interface between the operating system and hardware. The BIOS can come from the motherboard ROM, expansion cards, or be loaded from disk. It runs the POST to test components and has a setup program to store settings like boot options and device configurations.