Common Table Expressions (CTEs) are a powerful feature in SQL that allows you to define temporary result sets, which can be referenced within a SELECT, INSERT, UPDATE, or DELETE statement. CTEs help break down complex queries into more manageable parts, making the query more straightforward to write, read, and debug. In AWS Redshift, CTEs can be used to improve the organization and readability of your SQL code, but their impact on performance can vary depending on how they are used.