The ORDER BY clause in SQL sorts the rows returned by a query. You specify which column to sort by and whether to sort ascending (ASC) or descending (DESC). The process starts with the original table data. Then the database compares the values in the specified column and rearranges the rows accordingly. For example, sorting by age ascending puts the youngest person first. If DESC is used, the oldest person comes first. The sorted rows are then returned as the query result. This visual trace showed step-by-step how the data changes from unsorted to sorted by age ascending.