The BSD 2-Clause License (also called the Simplified BSD License or FreeBSD License) is a permissive open-source license. It permits use, copying, modification, and redistribution of the licensed software, in source or binary form, for any purpose, including commercial use, with only two conditions: the copyright notice and license text must be retained in source redistributions, and reproduced in binary redistributions' documentation or accompanying materials. It does not require derivative works to be released under the same license, and it does not require disclosure of source code.
Compared to MIT, BSD-2-Clause is functionally almost identical; both are short, permissive licenses with minimal conditions, differing mainly in wording rather than substance. Compared to Apache-2.0, BSD-2-Clause is shorter and does not include Apache's explicit patent grant and patent retaliation clause, so it offers less structured protection around patent litigation, though it does not restrict patent use either. Compared to copyleft licenses like the GPL, BSD-2-Clause does not require that modified or combined works be redistributed under the same license or made source-available, so it can be freely combined with proprietary code.
The license also includes a disclaimer of warranty and liability: the software is provided "as is," and the copyright holder is not liable for damages arising from its use. This is a standard clause in nearly all open-source licenses, not something specific to BSD.
Practically, using BSD-2-Clause-licensed code means an organization can incorporate it into proprietary or differently-licensed products with little obligation beyond keeping the original notice intact. This makes it a common choice for libraries and infrastructure tools intended to be embedded widely, including code distributed by the FreeBSD and OpenBSD projects.