Little's Law is a fundamental theorem in queuing theory that establishes a relationship between the average number of items in a queuing system, the average arrival rate of items, and the average time an item spends in the system. It can be expressed as L = λW, where L is the average number of items in the system, λ is the average arrival rate, and W is the average time an item spends in the system. This law helps to understand how queues behave in both service and manufacturing settings, making it essential for analyzing performance metrics.