The VLOOKUP function in Microsoft Excel enables users to quickly extract specific data from a table array based on a given value in another column, reducing the need for manual scrolling and guessing. By using the VLOOKUP formula with four parameters - lookup value, table array, column index number, and range lookup - users can efficiently retrieve data from complex datasets. The function can be used in both Excel and Google Sheets to extract information, and its application extends beyond spreadsheet data to automate tasks with other apps through integrations like Zapier.