How does PHP function on a server and how does it relate to creating HTML pages?

PHP functions on a server by processing code on the server side before sending the final HTML output to the client's browser. This allows for dynamic content generation and interaction with databases. PHP can be embedded within HTML pages using opening and closing PHP tags <?php and ?>, allowing for the mixing of PHP code and HTML markup within the same file.

&lt;?php
// PHP code to generate dynamic content
$dynamic_content = &quot;Hello, World!&quot;;
echo &quot;&lt;h1&gt;$dynamic_content&lt;/h1&gt;&quot;;
?&gt;