dbt Observability is a tool that helps monitor and analyze the performance of dbt jobs and models, providing insights into potential bottlenecks or issues in the data pipeline. It allows users to investigate long-running models, view historical trends of query runs, and receive alerts on anomalous job and model durations. The enhanced observability experience offers root cause analysis at the model level, enabling users to quickly identify problems and understand their context within a single platform. This helps in maintaining smooth data flow and preventing complete failure of the data pipeline.