Java was developed by Sun Microsystems in 1991 as a simple yet robust programming language. It is an object-oriented language that allows for abstraction, encapsulation, inheritance, and polymorphism. To compile and run a Java program, developers write code in an editor, save it with a .java extension, compile it to generate a .class file using javac, and execute the bytecode using java without specifying the file extension. The Java Virtual Machine then interprets and executes the bytecode, allocating memory and threads as needed.