A black hole is a cosmic body which has extremely strong gravity, such that, it does not let any particle escape from it, not even light.
They cannot be observed directly due to their small size and because no light is emitted from them, but they can be detected by the effects that is made by their intense gravitational field on nearby matter.
Some examples of black hole are Cygnus X-1 and Sagittarius A.
Formation of black holes:
Blackhole formation takes place when massive stars die. When the life of a massive star ends, its core becomes unstable and collapses and its outer layers get blown away.
The weight of matter falling from all sides compresses the star such that its volume becomes zero and density becomes infinite.