It is a protocol that allows a user to grant a third-party website or application access to the user's protected resources
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Workflow explanation
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Portal Azure Example
I used the portal azure as an example: https://portal.azure.com/#home. This website uses the Microsoft Azure AD to authenticate users.
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That’s means, once the authentication is done and everything is verified, the redirection will be done and you will be authenticated in the Azure Portal.
Website Example
The URL used for this example is https://tcogo-bgotc.azurewebsites.net/#/home. This application has an integration with Azure AD.
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At the moment the authentication is done and everything is verified, the redirection will be done and you will be authenticated in the application.
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API Example
The same workflow will happen when you have this Azure AD integration with your API.
This is an example and we can find the code here
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Configuration with Azure
For this API, you can find the documentation on how to do the configuration with Azure here