Event handling in ASP.NET involves responding to events that occur at the client or server. Events raised at the client are handled at the server. When an event like a button click occurs, the browser posts the event to the server, which checks for an associated event handler method to execute. Common events include page and control loading, data binding, and user interaction events. Event handlers are coded to respond to specific events and take action. Controls generate events that can be handled using attributes and event handler methods.