There is a section 3/4 down the page that explains line endings. Word wrap will simply shuffle content to the next line if the content cannot be displayed within the current lines availible line length, this will be performed until EOF.
Have a look how the Windows note pad (providing your using windows!) functions with word wrap on and off.
One other note is that if the HTML is going to be parsed before display you will not need to wrap the HTML code but only the displayed output.