Creating a user in MySQL involves writing a CREATE USER statement specifying the username, host, and password. When executed, this command adds the user to the mysql.user table, making the user recognized by the database system. The host part defines from where the user can connect, commonly 'localhost' for local machine access. After creation, the user can be granted privileges to access databases. Verification can be done by querying the mysql.user table to confirm the user exists. If a user already exists, MySQL will return an error unless IF NOT EXISTS is used. This process ensures secure and controlled access to the database.