Midrash is a form of rabbinic literature. There are two types of midrash: midrash aggada and midrash halakha. Midrash aggada can best be described as a form of storytelling that explores ethics and values in biblical texts.(Aggada literally means story or telling in Hebrew.) It can take any biblical word or verse and interpret it to answer a question or explain something in the text.idrash aggada can best be described as a form of storytelling that explores ethics and values in biblical texts. (Aggada literally means story or telling in Hebrew.) It can take any biblical word or verse and interpret it to answer a question or explain something in the text.