RxJava is a reactive extension for the Java virtual machine that facilitates programming with asynchronous data streams, utilizing functional reactive programming. The document outlines RxJava's basic components, including observables, subscribers, and data manipulation operators, and describes its Android-specific extension, RxAndroid, which provides bindings for Android lifecycle and views. It also addresses potential issues such as backpressure and memory leaks when using RxJava in Android applications.