Base 64 format is a binary-to-text encoding scheme used to transmit binary data in textual form, improving data usability in text-based mediums. During the encoding process, data is divided into 6-bit blocks and mapped to a 64-character set, with padding characters added for alignment. The decoding process involves mapping each character back to its 6-bit representation and combining the blocks into the original byte sequence, while removing any padding characters.