How does the circle of fifths work and how can it help in understanding music theory?

The circle of fifths is a tool used in Music Theory to show the relationship between different musical keys. It arranges the 12 major and minor keys in a circle, with each key a fifth apart from the next. This helps musicians understand key signatures, chord progressions, and modulation in music. By following the circle of fifths, musicians can easily identify related keys and create harmonically pleasing compositions.