A variable is a name given to a memory location that can store a value of a specified data type, such as integer or float, which can be changed during runtime. A constant is similar to a variable but once initialized, its value cannot be changed. Constants are typically defined with a #define statement without an equal sign or semicolon, or with the const modifier and an equal sign for initialization. Both variables and constants must be declared with a data type and can make programs more readable and maintainable by using descriptive names.