Deferred transitions in Svelte allow delaying the start of an animation. When a component's state changes to show or hide an element, the transition does not start immediately but waits for a specified delay time. After the delay, the transition runs, fading the element in or out. This process involves scheduling the transition, starting a timer for the delay, then running the animation once the timer finishes. The element remains in the DOM during the transition and is removed only after the fade-out completes. This technique helps create smooth and controlled UI updates.