Regex Tester runs a regular expression against your sample text as you type, highlighting every match directly in the text and breaking out each match's capture groups.
With it on, every match in the text is found and highlighted. With it off, only the first match is shown, matching how a regex behaves by default in most programming languages.
The tool shows the JavaScript engine's own error message (like an unterminated character class) instead of silently failing, so you can see exactly what's wrong with the pattern.
Yes, since it runs directly in your browser using JavaScript's built-in RegExp. Syntax specific to other languages' regex flavors (like PCRE's lookbehind extensions in older engines) may behave differently.