An implicit function is defined by a relation where a function cannot be explicitly solved for one variable in terms of another, such as in the equation F(x,y)=0. The example y^2 + x^2 = c illustrates that while y can be expressed explicitly, it has multiple implicit functions due to the square root yielding both positive and negative solutions. The implicit function theorem provides conditions under which a relation defines a continuously differentiable function uniquely. In optimal control theory, the smoothness of the object function is crucial, making the implicit function theorem a valuable tool. Understanding these concepts is essential for applying them effectively in mathematical contexts.