I'm a wordpress user and I was wondering if Drupal has the ability to let coders modify the output, or return value of a function trough filters.
(in WP you can do this with add_action / add_filter)
Yes, there are a few methods.
One uses what Drupal considers filters. I a not sure what the best starting point for these is, but the API reference for hook_filter_info should be a decent read.
Another is via preprocess and process functions. Again, I am not sure what the best online starting point for these is, but take a look at the API reference and search for "process" and "preprocess".
The concept of Drupal 7 render trees along with field templates / template functions can also be thought of as a way to process content for display.
My copy is at work, but I think both filters and preprocess/process hooks are discussed in Drupal 7 Module Development. I can't remember if render trees and field templates are in that book or their theming book.
While Drupal coding is very powerful, It is also possible to do a great deal within Drupal without writing any code. The Views Module is basic a UI for the mySQL database providing general and contextual filtering capabilities by filling out the forms. If your interested in learning more about views, watch the video series "Taming the Beast" at nodeone.se.