Domains are organized in a hierarchical structure, with Top-Level Domains (TLDs) at the root, followed by second-level domains, third-level domains, and so on. TLDs are managed by domain name registries, while domain name registrars sell domain names to individuals and organizations. The Domain Name System (DNS) translates domain names into IP addresses, allowing computers to find and communicate with each other. Subdomains and aliases provide additional flexibility in organizing domain names, while DNS records store information about domain names.