The @Aspect annotation in Spring Boot marks a class as an aspect that contains advice methods. Spring scans for these classes and creates proxies for target beans matching pointcut expressions. When a client calls a target method, Spring runs the advice method first if annotated with @Before, then executes the target method. This allows adding behavior like logging without changing the original code. The execution flow starts with scanning, proxy creation, method call, advice execution, target method execution, and finally returning to the caller. Variables like the aspect instance and advice trigger state change during execution. Common confusions include why advice runs before the method, how Spring matches methods, and that advice does not replace the target method. Visual quizzes reinforce understanding of each step.