Caching and time to live
Because of the huge volume of requests generated by a system like DNS, the designers wished to provide a mechanism to reduce the load on individual DNS servers. To this end, the DNS resolution process allows for caching (i.e. the local recording and subsequent consultation of the results of a DNS query) for a given period of time after a successful answer. How long a resolver caches a DNS response (i.e. how long a DNS response remains valid) is determined by a value called the time to live (TTL). The TTL is set by the administrator of the DNS server handing out the response. The period of validity may vary from just seconds to days or even weeks.
Caching time
As a noteworthy consequence of this distributed and caching architecture, changes to DNS do not always take effect immediately and globally. This is best explained with an example: If an administrator has set a TTL of 6 hours for the host www.wikipedia.org, and then changes the IP address to which www.wikipedia.org resolves at 12:01pm, the administrator must consider that a person who cached a response with the old IP address at 12:00pm will not consult the DNS server again until 6:00pm. The period between 12:01pm and 6:00pm in this example is called caching time, which is best defined as a period of time that begins when you make a change to a DNS record and ends after the maximum amount of time specified by the TTL expires. This essentially leads to an important logistical consideration when making changes to DNS: not everyone is necessarily seeing the same thing you're seeing. RFC 1537 helps to convey basic rules for how to set the TTL.
Note that the term "propagation", although very widely used in this context, does not describe the effects of caching well. Specifically, it implies that [1] when you make a DNS change, it somehow spreads to all other DNS servers (instead, other DNS servers check in with yours as needed), and [2] that you do not have control over the amount of time the record is cached (you control the TTL values for all DNS records in your domain, except your NS records and any authoritative DNS servers that use your domain name).
Some resolvers may override TTL values, as the protocol supports caching for up to 68 years or no caching at all. Negative caching (the non-existence of records) is determined by name servers authoritative for a zone which MUST include the Start of Authority (SOA) record when reporting no data of the requested type exists. The MINIMUM field of the SOA record and the TTL of the SOA itself is used to establish the TTL for the negative answer. RFC 2308
Many people incorrectly refer to a mysterious 48 hour or 72 hour propagation time when you make a DNS change. When one changes the NS records for one's domain or the IP addresses for hostnames of authoritative DNS servers using one's domain (if any), there can be a lengthy period of time before all DNS servers use the new information. This is because those records are handled by the zone parent DNS servers (for example, the .com DNS servers if your domain is example.com), which typically cache those records for 48 hours. However, those DNS changes will be immediately available for any DNS servers that do not have them cached. And any DNS changes on your domain other than the NS records and authoritative DNS server names can be nearly instantaneous, if you choose for them to be (by lowering the TTL once or twice ahead of time, and waiting until the old TTL expires before making the change)
Users generally do not communicate directly with a DNS resolver. Instead DNS-resolution takes place transparently in client-applications such as web-browsers, mail-clients, and other Internet applications. When an application makes a request which requires a DNS lookup, such programs send a resolution request to the local DNS resolver in the local operating system, which in turn handles the communications required.
The DNS resolver will almost invariably have a cache (see above) containing recent lookups. If the cache can provide the answer to the request, the resolver will return the value in the cache to the program that made the request. If the cache does not contain the answer, the resolver will send the request to one or more designated DNS servers. In the case of most home users, the Internet service provider to which the machine connects will usually supply this DNS server: such a user will either have configured that server's address manually or allowed DHCP to set it; however, where systems administrators have configured systems to use their own DNS servers, their DNS resolvers point to separately maintained nameservers of the organization. In any event, the name server thus queried will follow the process outlined above, until it either successfully finds a result or does not. It then returns its results to the DNS resolver; assuming it has found a result, the resolver duly caches that result for future use, and hands the result back to the software which initiated the request.