Temporary tables are just that. They are used most often to provide workspace for the intermediate results when processing data within a batch or procedure. They are also used to pass a table from a table-valued function, to pass table-based data between stored procedures or, more recently in the form of Table-valued parameters, to send whole read-only tables from applications to SQL Server routines, or pass read-only temporary tables as parameters. Once finished with their use, they are discarded automatically.
Temporary tables come in different flavours including, amongst others, local temporary tables (starting with #), global temporary tables (starting