Variable declaration in PLC programming means creating a named storage space with a specific data type and optionally an initial value. The process starts by choosing a variable name, then selecting its data type like INT for integers or BOOL for true/false values. You can assign an initial value to start the variable with a known state. For example, 'counter' is declared as an INT with initial value 0, and 'motorOn' as BOOL with FALSE. This helps the PLC know what kind of data to expect and how to store it. If no initial value is given, the variable might start with a default or unknown value. Declaring variables properly is essential for clear and error-free PLC programs.