The Operator SDK basics start with creating a new operator project using 'operator-sdk init'. Then, you generate the API and controller code with 'operator-sdk create api'. Next, you install the Custom Resource Definitions (CRDs) into your Kubernetes cluster using 'make install' so the cluster understands your new resource types. After that, you run the operator locally with 'make run', which starts watching for your custom resources. When you create a custom resource like Memcached, the operator detects it and runs the reconcile loop to update the cluster state, such as creating pods. The operator keeps running to watch for changes and maintain the desired state. You stop the operator when you want to end the process.