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What is a soul in 40K terms? It's referenced many times, but it's never really defined in any terms. What happens to the souls when people die?

Well that depends on the race. For humans nothing they just die. Because their souls aren't strong enough to part from their body and remain conscious. Where as in Eldar their souls are captured in their spirit stones once the body dies or if the unthinkable happens is consumed by Slaanesh in the warp...

The few times that they are reffered to in 40k ussually involves them being devoured or eaten in some form.

My understanding is that the Eldar souls survive death because they are psychic enough to do so. But once they make it to the warp, they are found and devoured by Slannish. Which is the reason for spirt stones. Spirt stones catch the souls, and then the souls are placed in the Infinity Circuits.

Human souls just evaperate into the warp shortly after death. But there is speculation that psychic human souls would be able to survive and remain whole. If so, they are at risk after death of becomming enslaved or eaten.

Here is a recent topic that discusses this.

Souls in 40k are the emotional energy in a single entity. Humans, having little psychic ability, have weak souls that don't really retain consciousness after after death. Eldar, being psychics, are still self aware when they, which is wy they pilot wraith constructs and preserved spirit stones because the warp is hell... literally.