I want to store some data in a variable (and I know variables are stored in memory). Does that data in memory get encrypted? Also, is it possible for software to be able to read
No. Memory is not typically not encrypted.
Memory stores data that you write into it. At somepoint, memory will contain the plain-text version of your data, and this is sometimes used as a way to exploit systems.
That said, once an attacker has physical access to your machines, it's very difficult to secure them.
There are some language specific features that attempt to address this, such as C# SecureString , but even these have their limitations.