Use it to report the result of an action just taken — "Saved," "Failed to send." role="status" aria-live="polite" lets a screen reader announce it without interrupting whatever it's currently reading; use aria-live="assertive" for something urgent like an error.
Easy to confuse with a banner. A banner is pinned to the top of the page and stays until the user dismisses it ("Scheduled maintenance tonight"), while a toast is one-off feedback that clears itself within seconds. Auto-dismissing a banner like a toast means people won't finish reading it; leaving a toast up like a banner blocks the screen.
WCAG guidance suggests at least 5 seconds before auto-dismiss. Stack multiple toasts and push older ones up as new ones arrive.