The DPLL algorithm, short for Davis-Putnam-Logemann-Loveland algorithm, is a backtracking search algorithm used for determining the satisfiability of propositional logic formulas in conjunctive normal form (CNF). This algorithm is crucial in automated theorem proving, as it systematically explores possible variable assignments to find a solution that satisfies all clauses of a formula, while implementing strategies like unit propagation and pure literal elimination to optimize the search process.