The Multiverse is the central theme in the next 3 phases of the MCU and has been explored to some extent in recent Marvel Studios projects, although there are still many vague and conflicting points.
The Multiverse emerges as the new focal point of the Marvel Cinematic Universe (MCU) following the Thanos era and the Infinity Stones, with Phases 4, 5, and 6 amalgamated into the 'Multiverse Saga'. However, this topic has been somewhat ambiguously explored so far, sometimes lacking consistency among Marvel Studios' works.
The Multiverse was first introduced into the MCU in Avengers: Endgame, after the superheroes understood time travel and the workings of time, branching out whenever there's a change in the past. However, Marvel Studios had teased this theme years prior through Dr. Erik Selvig's multiverse research in Thor: The Dark World.

To date, the Multiverse has been explored through blockbuster TV shows and films such as Loki, What If...?, Spider-Man: No Way Home, or Doctor Strange in the Multiverse of Madness. However, Marvel Studios hasn't quite succeeded in explaining this concept, often making things more confusing and contradictory with each new release. The main reason behind this is that they only decided on the rules related to the Multiverse after wrapping up many of their projects.
For instance, Marvel has used the term 'dimension' to refer to all events occurring in alternate timelines, but sometimes it also signifies a completely separate world, a planet entirely disconnected from the MCU. Therefore, to fully grasp the rules of the Multiverse, audiences need to be particularly alert and cautious, avoiding Marvel's inconsistencies.
Here are the crucial details regarding the MCU Multiverse as of now.
The Multiverse is not just a collection of parallel realities

The best way to understand the MCU Multiverse is to compare it with Marvel Comics' storylines. Scott Derrickson, the director of Doctor Strange, once suggested to the audience to refer to Sorcerer Supreme #2 - a comic that defines the Multiverse for Marvel Comics, and also served as inspiration for Phase 4 of the MCU.
In this storyline, Earth is likened to the center of an endless ocean, while other timelines are mere ripples in the distance. However, there are entirely separate universes, still close enough to operate similarly. As you move towards distant universes, natural laws undergo more changes, and time and space become meaningless in worlds like the Dark Dimension. Light itself varies and transforms depending on the environment and natural conditions. Meanwhile, the threads of reality puncture holes - countless black holes within the universe.
However, the MCU has used the term 'dimension' differently, referring to areas above or below our reality, accessible only through advanced technology or powerful magic. For instance, the Quantum Realm lies beneath our world, described by Hank Pym as 'a reality where all concepts of time and space become meaningless as we shrink infinitely'. On the other hand, the Noor Dimension in the Ms. Marvel series is a world above our reality, separated by Noor energy.
Thus, the MCU Multiverse is not just parallel timelines but also separate worlds, separate dimensions from our reality.
Masters of magic harness energy from alternate worlds

In the blockbuster Doctor Strange, the Ancient One explained that magic involves drawing energy from other dimensions or worlds: 'The language of magic has existed for ages, much like human civilization. Ancient sorcerers often referred to this language as 'incantations.' But if you're more modern, you might call it 'coding.''. 'The source code shapes reality. We tap into the energy from other dimensions of the multiverse to use incantations, to conjure shields and weapons, thereby creating magic'.
When using the term 'dimension,' the Ancient One doesn't mean other timelines, but rather energy sources from other worlds. Essentially, masters of magic will draw energy from them and use it to rewrite the reality around them, which ordinary people would perceive as magic.
Some artifacts containing magic can act as intermediaries or conduits for energy from other dimensions. WandaVision and Doctor Strange in the Multiverse of Madness once again affirm this through magical books like Darkhold or the Book of Vishanti.
However, the energy sourced through these artifacts is often not neutral but carries the characteristics of the energy's origin. Darkhold damages and corrupts the user's mind, while the Book of Vishanti does the opposite, acting as a natural purifier. Sorcerers can also summon creatures from other dimensions and absorb their power to enhance their own 'strength.'
Loki introduces a new concept of the Multiverse and temporal branching

The Loki series is the first project to directly explore the Multiverse in Phase 4 of the MCU, bringing many differences from what we've analyzed above. That's the emergence of multiple parallel timelines.
Accordingly, the time flow is extremely chaotic. At any moment, any minor change can cause a phenomenon called a 'nexus' - a temporal branching. This phenomenon is so sensitive that even a small deviation in reality, such as someone being late for work (when they should always be on time), can trigger a nexus.
Unfortunately, when variants of the same individual across different timelines become aware of the existence of other realities, a Multiverse war breaks out. He Who Remains emerged victorious, thereby establishing the Time Variance Authority (TVA) to maintain a single timeline and erase all other branching realities. After He Who Remains is killed by Sylvie, the Multiverse is restored.
According to Kate Herron, the director of the Loki series, this aspect of the Multiverse is extremely complex, as the timelines can have connections and even merge with each other. 'Timelines can be seen as different realities', Kate stated, 'But as they develop to a certain point, they will connect with other timelines. In the final scene (of Loki), the thicker timelines have similar significance to our main timeline, and essentially, they are interconnected through the fainter timelines'. Next, Doctor Strange in the Multiverse of Madness reveals that this convergence can lead to the collapse of multiple realities, also known as incursions.
Furthermore, it seems that the Multiverse is a logical structure but has not been clearly explained. Both Dr. Erik Selvig and the Illuminati group have named their realities with different numbers, Earth-616 and Earth-838. If not within a specific structure, with laws, then such naming would be baseless and somewhat meaningless. But regardless of the reason, individuals from branching timelines are collectively called 'variants'. In the original, sometimes these variants are assigned additional numbers from their respective universes for easier distinction, such as Doctor Strange 616 or Doctor Strange 838.
America Chavez is the most important character of the Multiverse

Doctor Strange in the Multiverse of Madness brought America Chavez to the big screen, a superhero capable of opening gateways connecting realities within the Multiverse. According to this blockbuster, Chavez's power knows no bounds, as she can take Strange to branching timelines and even dimensions where the laws of physics are completely altered.
In the Ms. Marvel series, Bruno discovered that traversing the Multiverse is entirely feasible but requires a tremendous amount of energy, essentially equivalent to that of the sun. This indirectly demonstrates Chavez's potential and tremendous power to an extent. Moreover, based on the analysis above, it can also be tentatively affirmed that Chavez acts as a conduit, absorbing energy from another mysterious world to perform 'jumps' within the Multiverse.
Another notable point: America Chavez is unique, with no variants from other timelines. This explains why when traversing the Multiverse, she doesn't cause nexus events or create alternate timelines. That's why Chavez is considered the most important character, possessing the most formidable power of the 'Multiverse Saga.' Under the guidance of the sorcerers at Kamar-Taj, Chavez is likely to soon master her abilities and participate in Multiverse battles in Avengers: The Kang Dynasty and Avengers: Secret Wars.
As per ScreenRant