Matplotlib is a Python library used for 2D plotting. It can create publication-quality figures in both hardcopy and interactive formats across platforms. The basic steps for creating plots with Matplotlib are: 1) prepare data, 2) create a plot, 3) add elements to the plot, 4) customize the plot, 5) save the plot, and 6) show the plot. Matplotlib provides various functions for plotting different types of data, customizing figures, axes, and layouts.