We introduce and study the nodal liquid, a novel zero-temperature quantum phase obtained by quantum-disordering a d-wave superconductor. It has numerous remarkable properties which lead us to suggest it as an explanation of the pseudo-gap state in underdoped high-temperature superconductors. In the absence of impurities, these include power-law magnetic order, a T-linear spin susceptibility, non-trivial thermal conductivity, and two- and one-particle charge gaps, the latter evidenced, e.g. in transport and electron photoemission (which exhibits pronounced fourfold anisotropy inherited from the d-wave quasiparticles). We use a 2+1-dimensional duality transformation to derive an effective field theory for this phase. The theory is comprised of gapless neutral Dirac particles living at the former d-wave nodes, weakly coupled to the fluctuating gauge field of a dual Ginzburg-Landau theory. The nodal liquid interpolates naturally between the d-wave superconductor and the insulating antiferromagnet, and our effective field theory is powerful enough to permit a detailed analysis of a panoply of interesting phenomena, including charge ordering, antiferromagnetism, and d-wave superconductivity. We also discuss the zero-temperature quantum phase transitions which separate the nodal liquid from various ordered phases.