In Java, each thread has a priority that is used by the thread scheduler to determine execution order. The priority can be set from 1 to 10, where 10 is the highest priority. When multiple threads have the same priority, the scheduler will select one to execute based on its algorithm. Methods like getPriority() and setPriority() allow retrieving and setting a thread's priority at runtime. Common priority levels defined as constants include MAX_PRIORITY, MIN_PRIORITY, and NORM_PRIORITY. However, the actual effect of priority depends on the underlying operating system.