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It was formed in 1565 to give Ivan a section of territory in which he could be free from noble interference and rule as a completely unlimited autocrat. The Oprichnina contained much of Russia's best land, including Moscow and many of the large central cities. The rest of the Empire was referred to as the zemshchina; these areas were ruled by powerful boyars.
The Oprichnina was administered by the terroristic Oprichniks, who used extreme violence against any opposition to Ivan's rule. This included both nobles and peasants. During the era of the Oprichnina these Oprichniki killed thousands and devastated the area.
The Oprichnina was a total failure and Ivan was forced to disband it in 1573. What had once been Russia's best and most fertile areas had been devastated and had fallen well below the rest of the country. Those that had not been killed by the Oprichniks often fled into other areas of Russia. Instead of increasing (as Ivan had hoped), tax revenues fell, and Russia was badly prepared when the Crimean Tatars attacked in 1571.
Sergei Eisenstein depicted the Oprichniks as healthy, loyal, clean-looking persons in the movie Ivan The Terrible, Part I and then proceeded to show them in a less flattering light in Ivan The Terrible, Part II .