Postorder traversal means visiting the left child first, then the right child, and finally the root node. The code uses recursion to do this. It starts at the root node, goes down to the leftmost node, prints it, then moves to the right sibling, prints it, and finally prints the parent node. This repeats up the tree until all nodes are printed. If a node is null, the function returns immediately without printing. The printed order for the example tree is D, E, B, C, A. This traversal is useful for tasks like deleting a tree or evaluating postfix expressions.