Data binding in Angular connects the data model and the user interface so that when data changes, the UI updates automatically. In the example, a button shows how many times it has been clicked. The count is stored in a signal, which is a reactive data holder. When the user clicks the button, the signal updates, and Angular automatically updates the displayed text to show the new count. This automatic update avoids manual DOM changes and keeps the app consistent with user actions. Without data binding, the UI would not reflect changes, confusing users. The execution table shows each click updating the count and the UI text. This flow helps beginners see why data binding matters for smooth, interactive apps.