Composable Prompts is transforming the approach to using prompts with LLMs in modern applications by treating them as source code that needs to be composed and reused. This simplifies the creation of LLM-powered applications, allowing developers to harness the power of LLMs while managing their complexity through composition, testing, data handling, and abstraction. By adopting a more streamlined approach, developers can create refined outputs and make informed decisions using LLMs, just like they would with sanitized user inputs in database queries.