The pipe operator (|) in Linux command line takes the output from one command and sends it as input to the next command. For example, 'echo "apple banana cherry" | tr ' ' '\n'' sends the string from echo to tr, which replaces spaces with new lines. Step 1 runs echo and outputs the string. Step 2 runs tr, receiving that string as input and outputs each word on a new line. The pipe allows chaining commands easily by passing data between them without saving to files. If the first command outputs nothing, the second command receives no input and may output nothing. This flow helps build powerful command sequences.