What is the short game?
The short game in tennis includes balls played inside the service line usually on the bounce. We'll look at volleys as a whole separate skill. The ability to get underneath the ball rather than behind it is part of the requirement to manage a ball close to and below the net. While further back toward the service line with a ball above the knees the racket face can take more of a 45 degree to vertical position depending on the type of spin used. A topspin stroke creates lift so it is possible to hit these with a vertical racket face while slice or backspin usually needs a slightly open face, one facing upward. A majority of short balls are best taken with backspin or incremental amounts of sidespin.
How is it used in tennis?
One of the first things I do when walking out on a court with an opponent or a intermediate student is to see if they have a short game. If they are hesitant to come forward on a short ball and then fall to using their standard topspin groundstrokes on balls close and below the net I know there are many free points waiting to be taken in a match. More importantly if they are a student is that I know I must make them feel more comfortable with handling balls at lower speed and inside the service line. If I do this it will usually give them a start toward becoming an all court player.
Learn from Fed.
A good player not only has directional control, consistency, depth, spin, and speed on their shots but the ability to vary the depth of their shots. An example is when a player like Federer gets a mid-court ball and in most cases he will either go for an angled shot or deep placement to win the point or he might use it as an approach shot to gain a better position in the point at the net. Usually this is a function of the height of the ball where a higher sitting ball allows for a stronger attack while one below the height of the net need to be guided to a point on the court to create a much better opportunity. But I've also seen Federer move to the ball as if he were hitting an approach shot using body language that indicates what we call dynamic balance or moving forward through the shot rather than statically positioning and hitting the stroke. So Fed puts on this show of planning an approach and instead at the last second drops the ball short as a drop shot. He has then forced his opponent to join him in a a short game standoff and how well he hits the drop and then positions at the net will often determine if he wins the point.
The Yo - Yo strategy
One of the benefits of adding this additional risk facing your opponent is that they have to play closer in the court to protect against short angled shots or drop shots. If your opponent prefers to hang back 8 or 10 feet behind the baseline this can be a very uncomfortable situation for them. So your ability to manage the depth of the ball to include intentional short balls as well as deep ones can be a good way to keep them out of their comfort zone and off balance. If they prefer deep hight balls I'll make sure to add in some low sliding shots with backspin, drop shots, and short angles. If they can easily handle all of these then you are facing a very good player. If not though, you can manipulate them and keep them guessing by dropping them short and hitting the ball deep. Often they will reward you with errors and by giving you short balls that ideally you are well equipped to take advantage of.
A mid-court ball, one at the service line or just inside it is an opportunity to create a good volley or net position.
A means of improvement
So the way to improve your short game is to start your practice sessions with mini-tennis, short balls inside the service line. The more adept and comfortable you become with managing the speed, angle, and distance close to the net of short balls the more likely you will become a difficult player to face in a match of wits. I've often used a short game strategy against players who were a major challenge at the baseline, but had a clear weakness in handling short balls and often had no volley to give them a follow on strategy with a short ball. This will give you an opportunity to lob or pass them, or to watch them net balls on attempted winners with balls they should have just directed to a good spot on the court. Even better is when they demonstrate that their low volley is non-existent. The best thing to do with them at this stage is a low backspin that most will dump right into the net, or a topspin shot that they will pop up and allow you to have an easy put away as they stand there unhappily at the net.
My advice is to add this dimension to your game as part of the all court ability you want to develop. It can never work against you.