What the heck is a DAO?

Could you please elaborate on the concept of a DAO? I've heard this term used in the crypto community quite often, but I'm still a bit hazy on the specifics. Is it a type of organization? How does it operate differently from traditional corporations? What are the key characteristics that define a DAO? And how do they fit into the broader landscape of decentralized finance? I'm curious to understand the role they play and why they've gained so much attention in recent years.