Photoshop has been the industry standard image manipulation program for so long that its name has become a verb. It is common parlance to say that an image has been "photoshopped," or even just "shopped," meaning that it's been edited or manipulated.
It uses a layer-based editing system that enables raster image creation and altering with multiple overlays that support transparency.
Layers can also act as masks or filters, changing underlying colors. Shadows and other effects can be added to the layers.
Photoshop is used for creating and modifying raster images. These are images made up of millions of tiny pixels.
How tiny? The screen you are looking at contains 2,073,600 pixels, the TV has 8,294,400. A typical iPhone photo contains around 12 million!
Raster images are great for photos as you can change and modify every individual pixel - you just need to really zoom in!
If you are new to Photoshop then there are a few basic skills that you will need before you can really start manipulating images.
Brilliant tutorials are already built into Photoshop.
Open Photoshop then click Learn. Start with the Orientation series.
These will give you the basic skills you need for success.