What is an inverted chord?
An inverted chord is a chord where the notes have changed order, and the root note is no longer in the bass.
This will work with any chord but for this example I will use a major C chord.
Note that in each inversion, the bottom note moves up an octave so that the 3rd of the chord previously becomes the bass note.
C-E-G
E-G-C
G-C-E
Inversions can be useful when you have a bass line with 2 of the same notes but you want to harmonise differently over the top of it to embellish a chord progression.
For example, if you have a bass line of C, E, D, D, C: