A digital camera captures images through a lens and converts them into a digital format using a light-sensitive sensor, commonly a CCD (Charge-Coupled Device) or CMOS (Complementary Metal-Oxide-Semiconductor) chip. When light passes through the lens, it hits the sensor, which converts the light into electrical signals. These signals are then processed to create digital images that can be stored, edited, and shared, revolutionizing photography and videography.