Iron

Iron is two things in Minecraft, a block and an ingot.

Block
The iron ore block is found in caves. It's not as common as Coal, and neither it's rare as Gold nor Diamond. An iron block smelts into an iron ingot.

Ingot
Iron ingots are used to make a Bucket, a Minecart, an Iron Door and a full block of iron, and of course Tools and Armour. Iron Tools mine all blocks in the game, except for Obsidian and Bedrock.

Info Villager Says

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Iron tools are better than Stone, Wood and Gold.

. But not as better as Diamond.