All Soul's Day, November 2

The commemoration of all the faithful departed is celebrated by the Church on 2 November, or, if this be a Sunday or a solemnity, on 3 November. The Office of the Dead must be recited by the clergy and all the Masses are to be of Requiem, except one of the current feast, where this is of obligation. 

The theological basis for the feast is the doctrine that the souls which, on departing from the body, are not perfectly cleansed from venial sins, or have not fully atoned for past transgressions, are debarred from the Beatific Vision, and that the faithful on earth can help them by prayers, alms deeds and especially by the sacrifice of the Mass.

Historically, the Western tradition identifies the general custom of praying for the dead dating as far back as 2 Maccabees 12:42-46. The custom of setting apart a special day for intercession for certain of the faithful on November 2 was first established by St. Odilo of Cluny (d. 1048) at his abbey of Cluny in 998. From Cluny the custom spread to the other houses of the Cluniac order, which became the largest and most extensive network of monasteries in Europe. The celebration was soon adopted in several dioceses in France, and spread throughout the Western Church. It was accepted in Rome only in the fourteenth century. While 2 November remained the liturgical celebration, in time the entire month of November became associated in the Western Catholic tradition with prayer for the departed; lists of names of those to be remembered being placed in the proximity of the altar on which the sacrifice of the mass is offered.

The legend connected with its foundation is given by Peter Damiani in his Life of St Odilo: a pilgrim returning from the Holy Land was cast by a storm on a desolate island. A hermit living there told him that amid the rocks was a chasm communicating with purgatory, from which perpetually rose the groans of tortured souls. The hermit also claimed he had heard the demons complaining of the efficacy of the prayers of the faithful, and especially the monks of Cluny, in rescuing their victims. Upon returning home, the pilgrim hastened to inform the abbot of Cluny, who then set 2 November as a day of intercession on the part of his community for all the souls in Purgatory.

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Sources:  Wikipedia contributors, "All Souls' Day," Wikipedia, The Free Encyclopedia, //en.wikipedia.org/w/index.php?title=All_Souls%27_Day&oldid=448032918 (accessed October 4, 2011). 

Catholic Encyclopedia.  "All Soul's Day."  New Advent, http://www.newadvent.org/cathen/01315b.htm (accessed October 4, 2011).