The document discusses the flag register in processors like the 8086 and 8088. It explains that the flag register is a 16-bit register that contains status flags indicating the result of arithmetic operations like carry, zero, sign, overflow, and parity. It contains six status flags and three control flags that can be set or reset by programmers to control functions like interrupt handling and string instruction direction. The status flags provide information about the results of operations to determine subsequent instruction execution.