The OVER clause in SQL is a powerful tool for performing calculations over a set of rows related to the current row. It's often used in conjunction with window functions, which operate on a set of rows rather than just the current row. Imagine you want to calculate the running total of sales for each day. Without the OVER clause, you'd need a subquery or a self-join, which can become complex and inefficient. The OVER clause simplifies this by defining a window of rows to operate on. This window can be based on the order of rows, or on other criteria, making it highly flexible. The OVER clause essentially creates a temporary, virtual table containing the rows relevant to the current row's calculation. This virtual table is then used by the window function to produce the result. This approach is more efficient and readable than using subqueries or joins for similar tasks.