It's not very good example especially for beginners.
You need to know that C strings are ordinary arrays of characters that ends with zero character '\0' or just 0.
for example if you define c string like:
It means it can store 49 character + zero character.
You can look to name of an array as a pointer to first element in an array (although it's not quite true).
You have a function that receive char pointer and that is just it a pointer to character. It can be incremented and decremented.
If you call function EeadLine(text) that means that pinter to the first character in array text is copied and thransfered to function. You can increment and decrement pointer in that function, so you can traverse your array.
getchar() function read from standard input and returns int, not char, and in your example there is truncation which is why I don't like this example very much, but this can serve to teach you more about C strings.
Line:
means this:
read character and place it in location where line points to i.e. change element on which line points with element that getchar read from input.
Every time you enter some text in console window and hit Enter a newline marker '\n' is placed in text.
So in loop you basicaly read one character at a time an store it on place to which line points to, next increment line (since this is pointer) to point to the next location, place another element and so on until you reach '\n' which denotes end of line. Last step is to place zero character '\0' or 0 to end string.
I hope this explanation helps.