YouTube monetization allows content creators to earn money through various methods such as ads, channel memberships, Super Chat, and merchandise shelf. Creators must meet eligibility criteria, including 4,000 watch hours in the last 12 months and 1,000 subscribers, to apply for the YouTube Partner Program. Once accepted, ads are displayed on videos, and creators earn revenue based on factors like ad engagement and viewer demographics. Additional monetization features offer opportunities for creators to diversify their income streams.