Modulation is the process of encoding information from a message source for transmission. It involves translating a baseband message signal to a bandpass signal at higher frequencies. Modulation can be done by varying the amplitude, phase, or frequency of a carrier signal based on the message signal. Digital modulation uses a discrete time sequence of symbols to represent bits of information, allowing for robustness and enabling techniques like error correction coding. The choice of digital modulation influences factors like bit error rate, power efficiency, bandwidth occupancy, and performance in fading channels.