The document derives Bresenham's line algorithm for drawing lines on a discrete grid. It starts with the line equation and defines variables for the slope and intercept. It then calculates the distance d1 and d2 from the line to two possible pixel locations and expresses their difference in terms of the slope and intercept. By multiplying this difference by the change in x, it removes the floating point slope value, resulting in an integer comparison expression. This is defined recursively to draw each subsequent pixel, using pre-computed constants. The initial p0 value is also derived from the line endpoint coordinates.