A microstate is a specific detailed microscopic configuration of a thermodynamic system that corresponds to one particular way the system can be arranged. Each microstate represents a unique arrangement of particles and energy levels in the system.
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Microstates are fundamental to understanding entropy, as entropy measures the number of possible microstates.
The more microstates available to a system, the higher its entropy.
Each macrostate (observable state) can correspond to many different microstates.
Boltzmann's entropy formula, $S = k_B \ln(\Omega)$, relates entropy $S$ to the number of microstates $\Omega$.
Microstates help explain why certain processes are spontaneous based on probability and disorder.