In Flask, the application context is a special environment created for each request or manually using app.app_context(). This context allows you to access the current_app variable, which holds the Flask app instance. The flow starts when the Flask app is created, then when a request comes in or when you enter a 'with app.app_context()' block, the application context is pushed. Inside this context, you can safely access current_app and its properties like the app's name. After processing, the context is popped, and current_app becomes unavailable again. Trying to access current_app outside the application context causes an error. This mechanism helps Flask keep track of app-specific data during requests.