Wool is animal hair. This refers to certain parts of the fur: the soft undercoat, and the fleece. With wool, however, the long, thick upper hair is undesirable.
The wool comes mostly from sheep, but also from some other animals. People have been raising sheep for thousands of years. They made sure that the animals always had better wool.
So sheep were selected for breeding that had as little upper hair as possible. In addition, the coat should be without its own color. The hair should also not fall out every year. This is how the sheep as we know them today came about.
Wool keeps warmth. That’s why people like to make clothes out of it. Wool repels water, dirt doesn’t stick well. However, some people find that wool is itchy.