It is a fairly straight-forward platforming game using the tried-and-true "find all the stuff in the stage and reach the exit to proceed" formula. But how it does it is great. Similar to Rayman Origins and Little Big Planet, death is almost meaningless and actually can be hilarious in multiplayer. Also like Little Big Planet, customizing your character is one of the big draws, as you spend level collectibles for more crazy heads for your character to wear and more bizarre weapons to use. They even have limited time heads that can be obtained only by logging in on a certain day or completing a certain player-made world within a certain few days. Oh, that's right, I didn't even mention the fact that you can create and upload your own levels with the built-in level editor! But you probably won't need it for a while, as the game has completely different worlds for single-player and two-player (the multiplayer levels are designed to require teamwork), as well as arena games for 3 and 4 players, all local or XBL. You also keep all of your heads and weapons between single-player and multiplayer, so there is a lot of benefit in playing all the way through both (you can't get all the heads available playing either one alone).
If you like the dying breed of local co-op and remember days gone by of having a blast all sitting on the couch together playing rather than talking to them on a headset, I highly recommend Battleblock Theater. The game also has a great sense of humor that only adds to the hilarious, but challenging gameplay.