Bresenham's line algorithm uses incremental integer calculations to determine which pixels to turn on when drawing a line on a pixel-based display. It works by calculating a decision parameter Pk at each step k to determine whether to plot the pixel at (Xk+1,Yk) or (Xk+1,Yk+1). For a given line from (30,20) to (40,28), the algorithm is applied by initializing P0=6 and then iteratively calculating Pk+1 at each step k by adding either 2dy or 2dy-2dx depending on whether Pk is positive or negative. This tracks the line from (30,20) to (40,28)