ASP.NET is a server-side web development technology that enables the creation of dynamic web pages using programming languages supported by the .NET framework, providing scalability, improved performance, and simpler deployment. It distinguishes itself from classic ASP by being compiled rather than interpreted, supporting full XML features, and providing robust error handling and validation controls. The ASP.NET application life cycle outlines the stages from user requests to page rendering, while visual tools like Visual Studio .NET facilitate the development process.