DNA encryption works by converting binary data into DNA sequences. The binary data (composed of 0s and 1s) is mapped to the four nucleotide bases of DNA. For instance, a binary '00' could represent adenine (A), '01' could represent cytosine (C), '10' could represent guanine (G), and '11' could represent thymine (T). This encoded DNA can then be synthesized and stored or transmitted for secure communication.