HTML is a subset of SGML which involves marking up ASCII text files with standard codes (example). This is typically done with a basic text editor, although dedicated authoring tools and scripts are becoming available to automate the task. The ISO standard, now at version 2.0, will certainly see a great deal of development over the next few years. Currently it allows for only the simplest of page layouts.
[2000 update: Let's just say that a lot has changed!]
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