$\DeclareMathOperator\SL{SL}\DeclareMathOperator\PSL{PSL}\DeclareMathOperator\GL{GL}$The reason that there are uncountably many irreducible representations is not so bad, and gets at an important point: You shouldn't think of irreducible representations of a group like $\SL_2(\mathbb Z)$ individually, but rather as points in a space of representations, i.e. objects parameterized by a geometric space.
This is simplest to see for representations sending $-I \in \SL_2(\mathbb Z)$ to the identity, i.e. representations of $\PSL_2(\mathbb Z)$. By the presentation YCor gave $\PSL_2(\mathbb Z) = \langle x,y \mid x^2 =y^3 =1 \rangle$, such a representation is given by a matrix $X$ satisfying $X^2=1$ and a matrix $Y$ satisfying $Y^3=1$, and representations up to isomorphism are given by pairs of matrices up to conjugation.
For $n$-dimensional representations, say $n$ a multiple of $6$, it's not so hard to check that the space of matrices $X \in \GL_n(\mathbb C)$ with $X^2=1$ has dimension $n^2/2$ (over $\mathbb C$), and the space of matrices $Y \in \GL_n(\mathbb C)$ with $Y^3= 1$ has dimension $2n^2/3$, so the space of pairs has dimension $n^2/2 + 2n^2/3$, isomorphism classes of $n$-dimensional representations have dimension $n^2/2 +2n^2/3 - (n^2-1) = n^2/6+1$.
One can check that irreducible representations are an open subset, and thus that the space of irreducible representations has the same dimension.
So certainly there are uncountably many, because they're parameterized by a positive-dimensional manifold!
However, it's clear from this analysis that this space should be one of the primary objects of study in the representation theory here, as it is for representations of surface groups and in some other cases of interest.