After watching a colloquium by Alexander Zamolodchikov on this topic, I think I can answer this question in broad strokes now.
At a basic level, $T\overline{T}$ deformation refers to a flow on the space of 2D QFTs in a direction given by the determinant of the stress-energy tensor $T_{\mu \nu}$. Explicitly, the infinitesimal change in the Lagrangian density $\mathcal{L}$ along the flow is given by
$$\mathcal{L}\rightarrow \mathcal{L}+\delta t \det T_{\mu \nu} = \mathcal{L}+\frac{\delta t}{\pi^2} T\overline{T}$$ hence the name $T\overline{T}$ deformation. More generally, there are similar deformations generated by any pair conserved currents associated with $\mathcal{L}$.
The interesting thing about these deformations is that, when you do the math, the effect of the deformation on the observables of the theory is totally solvable. Thus one of the main things these deformations are useful for is understanding what the space of all possible QFTs "looks like". For instance, the traditional point of view in QFT focuses on field theories described by well-behaved, quasi-local actions. However, we have reason to believe that not all QFTs should be described in this way (because of something known as the "UV completeness problem", which is where RG flows take you out of this space of "nice" QFTs). It seems that $T\overline{T}$ deformations might be a way to generate such exotic QFTs, which would nevertheless have understandable properties.
Alexander Zamolodchikov's main interest in $T\overline{T}$ deformations was for this reason, to understand better the space of all possible QFTs. However, he mentioned that there are also connections to quantum gravity, holography, world-sheet dynamics of strings, and non-relativistic deformations.