One of the best features of temp tables is that an index can be applied to them.

To clarify temp tables start with #, exist within the tempdb and are accessible within child batches (nested triggers, procedure, exec calls) of the query.

The execution plan can also determine the relevant statistics regarding their operation and suggest means of optimisation and will often suggest applying an index to the table.
Below is a simple example of applying both clustered and nonclustered indexes to the temporary table #Apostle created from a CTE (Common Table Expression).

IF OBJECT_ID('tempdb..#Apostle') IS NOT NULL
	DROP TABLE #Apostle;

WITH CTE
AS (
	SELECT 1 AS ID
		,'Simon Peter' AS NAME
	
	UNION
	
	SELECT 2
		,'James'
	
	UNION
	
	SELECT 3
		,'John'
	
	UNION
	
	SELECT 4
		,'Andrew'
	
	UNION
	
	SELECT 5
		,'Philip'
	
	UNION
	
	SELECT 6
		,'Thomas'
	
	UNION
	
	SELECT 7
		,'Bartholomew'
	
	UNION
	
	SELECT 8
		,'Matthew'
	
	UNION
	
	SELECT 9
		,'James'
	
	UNION
	
	SELECT 10
		,'Simon'
	
	UNION
	
	SELECT 11
		,'Thaddaeus'
	
	UNION
	
	SELECT 12
		,'Judas'
	)
SELECT *
INTO #Apostle
FROM CTE

-- CREATE INDEXES
CREATE CLUSTERED INDEX IDX_CLUSTERED_ID ON #Apostle (ID)

CREATE NONCLUSTERED INDEX IDX_NONCLUSTERED_ID ON #Apostle (ID)

Microsoft defines clustered and nonclustered indexes as the following:

Clustered

• Clustered indexes sort and store the data rows in the table or view based on their key values. These are the columns included in the index definition. There can be only one clustered index per table, because the data rows themselves can be sorted in only one order.
• The only time the data rows in a table are stored in sorted order is when the table contains a clustered index. When a table has a clustered index, the table is called a clustered table. If a table has no clustered index, its data rows are stored in an unordered structure called a heap.

Nonclustered

• Nonclustered indexes have a structure separate from the data rows. A nonclustered index contains the nonclustered index key values and each key value entry has a pointer to the data row that contains the key value.
• The pointer from an index row in a nonclustered index to a data row is called a row locator. The structure of the row locator depends on whether the data pages are stored in a heap or a clustered table. For a heap, a row locator is a pointer to the row. For a clustered table, the row locator is the clustered index key.
• You can add nonkey columns to the leaf level of the nonclustered index to by-pass existing index key limits, 900 bytes and 16 key columns, and execute fully covered, indexed, queries.

Source

To learn more about indexes this is a good video on the topic.