Bryce Mahon wrote a terrific post on using Masks in Photoshop, and has promised more to come.
But just in case there are some folks that are just getting acquainted with Photoshop, and don't quite have a handle on either "Layers" or "Masks" yet, I thought I'd put together a First Grade Level Primer on Layers, as a kind of prequal to Bryce's info. Just to get the basic concept clear.
Any image in Photoshop can be made up of multiple layers. Each layer can be edited independently, and laid on top of or beneath another layer; all the layers combine to form a single image.
Think of each layer as a clear film sheet, sort of like the stuff page protectors are made of. Suppose you had, oh, say 4 or 5 sheets of clear film, and you wanted to do something artisic.
Let's say you drew the sun on the first sheet.

Then you drew some mountains on the second sheet.

Then you put the sheet with the mountains on top of the sheet with the sun:

Voila! You just created an image using Layers. Layers in Photoshop works on exactly the same principle.
This is too much fun, I'm going to keep going. I'm going to draw a dog on the third sheet.

And I'll put the dog on top of the two other layers so you can see all three objects: The sun, the mountains and the dog.

One more: How about adding a person?

Combined image with all Layers: Sun, mountain, dog, person:

But suppose I decide to take the dog out? All I need to do is remove the Layer with the dog.

I can also apply special effects to each layer separately ... and that's where Masking will come in.
Primer Page Two: Photoshop: 1st Grade Primer On Layers: Page 2
Primer Page Three: Photoshop: 1st Grade Primer On Layers: Page 3
Take it away, Bryce.....!!