They are basically text files containing a list of command line actions to be carried out which save time if you're frequently running the same set of commands manually at the command prompt and they can also be used with Cron to have them automatically run at configured time intervals.
To create a Bash script you would simply call your favorite text editor. For this example I will use nano ..
Code:
nano mybashscriptname.sh
To call the script I would enter the command ...
Code:
bash mybashscriptname.sh
The script can also be used is a similar way with Crontab as mentioned above.

