Rigify is a custom Blender complex rig, with lots of bones and constraints.
All bones have to be placed in an exact location, matching the model's features.
Using a simple source armature (wich is called Metarig) you can choose the placement of the deforming bones, then pressing the "Generate" button a Python script will create all the useful bones in the right placement, speeding up a lot the whole process.
In the bone layers of the generated rig you will find: layer 29 deforming bones (DEF), layer 30 machinary bones (MCH, which are meant not to be touched by the user), in layer 31-last a complete rig matching the original metarig (ORG).
All others bone layers contain all the control bones with a custom shape meant to be more easily controlled by animators.
There are some others Rigging addons, like Auto Rig Pro or BlenRig, where the same approach is used: you manually set some points and the addon does the rest of the job.
I often use the ORG bones to apply supplementary constraints (like if I want a weapon to be hold by the hand of the character).