CVC words are short words consisting of three letters, where "CVC" refers to the structure of the word, which includes a Consonant, then a Vowel, followed by another Consonant. These words help children and early learners in their reading journey by understanding basic sounds and pronouncing simple words. CVC words typically include common, easy-to-read words like "cat," "dog," and "hat," which can be broken down and pronounced according to the individual sounds of each letter.