The Sprite Renderer component in Unity lets you display 2D images on GameObjects. First, you add the component to your GameObject. Then you assign a sprite image to the sprite property. You can change the color to tint the sprite, flip it horizontally or vertically using flipX or flipY, and control which sprites appear on top by setting sortingLayer and sortingOrder. Each step changes the component's properties, and the sprite updates visually in the scene. If you forget to assign a sprite, nothing will show. Flipping changes the image orientation without changing the sprite itself. Sorting order determines layering when multiple sprites overlap.