is there some standard about how to graphically represent database schemas? Is UML a defacto standard for this?
Also, is there some free tool that can help me convert an sql file (basically bunch of CREATE TABLE queries) into some nice graph (UML or not UML)?
You are looking for ERD:
http://en.wikipedia.org/wiki/Entity-relationship_model
As for a tool, visual Paradigm UML can help you model (with both UML and ERD). The community edition allows you to create ERD diagrams.