The nil coalescing operator in Swift checks if an optional variable has a value. If it does, it unwraps and uses that value. If the optional is nil, it uses a default value instead. For example, if 'name' is nil, 'name ?? "Guest"' returns "Guest". This prevents crashes from unwrapping nil optionals. The operator evaluates the default only when the optional is nil, making it efficient. This behavior is shown step-by-step in the execution table, where the optional 'name' is nil, so the default "Guest" is used and printed.