Distance Vector Routing (DVR) Protocol is a method used by routers to determine the best path for data transmission by maintaining a table of distances to other routers. The protocol involves routers sharing distance information with neighbors to update their routing tables, and it has applications in computer networking, telephone systems, and military operations. While it effectively finds the shortest path and is easy to implement, it has disadvantages such as slower convergence, susceptibility to the count-to-infinity problem, and increased traffic due to periodic updates.