Python offers file handling and enables users to read and write files, as well as perform a variety of other file-related tasks.

Python processes files depending on whether they are text or binary, which is crucial. The code consists of a series of characters that together constitute a text file. 

A particular character called the EOL (End of Line character), such as the comma, or a newline character, is used to end a line in a file. It tells the interpreter that the current line has ended and a new one has begun.