Iodine is predominantly used as a staining agent in histology. One of its primary applications is in the Gram staining process, where iodine serves as a mordant, forming a complex with crystal violet dye. This complex helps to differentiate between Gram-positive and Gram-negative bacteria. Additionally, iodine is a key component in the Lugol's iodine solution, which is used for staining glycogen and identifying amyloid deposits.