Implicit differentiation is a method used to find the derivative of an equation in which the equation is not written in the form "y = something". It involves differentiating each side of the equation with respect to the same variable, typically "x", and is useful for finding derivatives of equations with multiple variables and higher-order derivatives. Examples include finding derivatives of equations involving circles, lines, and parabolas. By practicing implicit differentiation, students can learn to solve complex equations and understand the relationship between a function and its derivative.