How do one identify something they see in the sky? I've always wondered how someone looking at the sky into the enormous amount of stars and other things out there figures out that whether it is an already identified object or is he looking at something new? Is there some sort of tools like latitude and longitude to pin point something in the sky or some catalog where you can see if this is an identified object and what it is called, how it looks like and where it is located and all? 

As you might have guessed, I don't have any science background, just asking out of a common man's curiosity, so please be gentle with the jargon you use.
There exist many astronomical catalogs, reaching from rather simple catalogs like the Bayer catalog for stars, or the Messier catalog for galaxies, nebulae, etc., to huge catalogs with millions of entries. A catalog with about a billion objects is scheduled for 2022.

There exist also printed editions of some catalogs.

Objects in the sky have several properties, by which they can be described and mostly identified.

One of the most frequently used properties is the position in the sky. From the local geographic position and the time, the observed position of the object can be translated into a celestial coordinate system, e.g. the equatorial coordinate system. The position of an object is described in this system by declination and right ascension.

Two other frequently used properties are magnitude and color.

Also frequently used are patterns of stars, meaning their relative position to each other, beginning with star constellations.

The analysis of steller spectra allows a more detailed identification.

Longer term observations may uncover variability and proper motion as additional properties.

Here is a description of parameters (including properties) provided by the BSC5p catalog.