Adobe defines Clipping Path as “an object whose shape masks other artwork so that only areas that lie within the shape are visible”. The visible part of the scene is what lies beneath the 'Mask'. Let me give you a clear idea with this example.
Open a new document and import an image using File > Place from the Menu bar. Select the picture and click Place.
The photo is now in the Illustrator workspace.
Choose the rectangle tool from the Toolbox and create a rectangle on top of the photograph similar to the one shown below. This object is called the clipping path.
Choose both the rectangle and the photo. From the Menu bar select Object > Clipping Mask > Make.
You will get this image:
The object that stands on top of the stacking order will be used as the mask and the part of the image that lies inside this shape will be visible.
The objects that you masked are moved into the clipping mask’s group in the Layers panel as seen below. (Open the layers panel Windows > Layers, or simply press F7.)
We have removed the car out of the sight. There are two frames with a blue border. The larger border is the outline of the original image. The smaller one is the outline of the clipping mask.
Select the clipping mask if you have deselected it. We will focus on the two available editing modes while working with a clipping mask's group.
On the left hand side in the control panel you have two options. Click on the Edit Clipping Path button . You will see that the only border available is that of the mask. Choose the path with the Selection Tool and play around with the size of the rectangle or select the Direct Selection Tool and adjust individual anchor points.
Click on Edit Contents and move the original image, thus revealing a different portion of the photograph.
Now you don’t require the mask. To remove the mask, navigate to Object menu > Clipping Mask > Release.
Now the image and the rectangle are independent from one another. You can delete the rectangle and move on with your design.
USEFUL TIP
There is an even quicker way to achieve the final result. Place the image, choose it and from the top panel and choose Mask.
By clicking Mask, a rectangular mask is automatically created on top of the image you placed. This mask has the exact dimensions with those of your image.
Now you are in clipping path mode. Pick the selection tool you want and adjust the size and shape of the mask.
Any kind of shape can be used as a mask. Now replace the rectangular shape with a star, circle or even Text. Below you can see the result with a star used as the clipping path.
Another useful application of clipping masks is when working with text. Instead of having a 'dull' fill colour, find a colourful image and use it as the text fill. For this, pick a thick Font and write something on top of the image. Choose both the text and the image and create the Clipping Mask.
LAYER CLIPPING MASK
Another function that offers more flexibility is applying masks within the Layers panel. In brief, you use a layer to mask another layer. Let me show you an example.
Open a new document and place the same photo. Open the Layers Panel and place it somewhere near the image so that I can easily access it. Create a closed path that contains just the dog drinking water. Leave out the car and the background of the image.
The original photo layer contains two elements: the image element that contains the photograph and the Path element that contains the yellow outline. We are going to use the yellow stroked path as the mask so that we only see what is inside that path. In order to achieve that, use the Layer Mask.
Click on the Layer that contains the image and the path to select it, and then click on the Make Clipping Mask button shown below.
: 
The topmost object (clipping path) inside the original photo layer masked everything below it (Image). Choose the layer again and just click the Make Clipping Mask button again. The masking is gone.
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