The video explains that objects in JavaScript represent real-world entities, such as a laptop with properties like CPU, RAM, and storage, or a bank account with balance and username. Objects are defined as key-value pairs to model these attributes. One way to create objects is through object literals, where properties are specified inside curly braces. For instance, an object for an IT professional might include properties like name, technology, and experience. Even an empty object can be created using just curly braces.