Armstrong's axioms are a set of three rules used in database management to find all functional dependencies implied by a given set. The rules are Reflexivity, Augmentation, and Transitivity. Starting with initial functional dependencies, we apply these rules step-by-step to derive new dependencies. For example, from A->B and B->C, we derive A->C by Transitivity. We also add trivial dependencies like A->A by Reflexivity. Augmentation allows adding attributes to both sides of a dependency. This process repeats until no new dependencies can be found, resulting in the closure of the functional dependencies.