(From November 2020, in response to customer feedback and research, the term Entity has been changed to Table).
Entities are used to model and manage business data within Microsoft Dynamics 365. For example, entities such as account, lead, and opportunity can be used to track and support sales and marketing activities.
An entity has a set of attributes, with each attribute representing a data item of a particular type. For example, the account entity has Name, Address, and OwnerId attributes. Conceptually, an entity is like a database table, and the entity attributes correspond to the table columns. Creating an entity record in Microsoft Dynamics 365 is like adding a row in a database table.
Entities are divided into three categories: system, business, and custom. As a developer working with business data, you will use business and custom entities. System entities are used by Microsoft Dynamics 365 to handle all internal processes, such as workflows and asynchronous jobs.
You cannot delete or customise system entities.