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Styles make it easy to customize the appearance of everything in your application, and provide you with different ways to associate appearance with objects. Styles are fairly versatile: you can change styles at runtime to make your application more reactive, you can set them from MXML or ActionScript, and you can bind them to data sources.
In MXML, styles are set as attributes of tags. Unlike some declarative XML languages, in MXML, attributes for event names, styles, effect triggers, and instance properties all share the same namespace. You can use the icons on Flex Builder 2's autocomplete pop-up to differentiate, and to see which styles are available to which components. Alternately, you might use the Flex Properties panel in Flex Builder 2's design mode to see available styles, or reference the Styles section of the class's documentation.