Postorder traversal means visiting the left subtree first, then the right subtree, and finally the root node. The code uses recursion to do this. Starting at the root, it goes down to the left child until it reaches a leaf. Then it visits that leaf node. After finishing the left subtree, it moves to the right subtree and does the same. Finally, it visits the root node after both children are visited. This process repeats until all nodes are visited. The example tree shows the order: D, E, B, F, C, A. When a node has no child, the function returns immediately. The traversal ends when all nodes are visited.