Thread
When you start an app, a process is created to execute the code. To efficiently use computing resource, threads can be started within the process so that multiple tasks can be executed at the time. So threads allow you to build efficient apps by utilizing cpu efficiently without idle time.
In Android, all components execute on a single called main thread. Android system queue tasks and execute them one by one on the main thread. When long running tasks are executed, app become unresponsive.
To prevent this, you can create worker threads and run background or long running tasks.
Handler
Since android uses single thread model, UI components are created non-thread safe meaning only the thread it created should access them that means UI component should be updated on main thread only. As UI component run on the main thread, tasks which run on worker threads can not modify UI components. This is where Handler comes into picture. Handler with the help of Looper can connect to new thread or existing thread and run code it contains on the connected thread.
Handler makes it possible for inter thread communication. Using Handler, background thread can send results to it and the handler which is connected to main thread can update the UI components on the main thread.
AsyncTask
AsyncTask provided by android uses both thread and handler to make running simple tasks in the background and updating results from background thread to main thread easy.
Please see android thread, handler, asynctask and thread pools for examples.