The visual editor provides a semi-WYSIWYG (What You See is What You Get) content editor that allows you to easily create, edit, and format your blog content in a view similar to that of a word processor.
WordPress.com Support – Visual Editor
It mimics the behavior of desktop publishing tools such as Microsoft Word and even has many of their features such as a toolbar along the top allowing you to format your content.
WPbeginner – What is Visual Editor in WordPress?
What is the WordPress Visual Editor?
The point of the Visual Editor is to emulate software like Windows Notpad or like Apples TextEdit. It is somewhat basic but has some new features, like adding pictures and videos with in the content. In the editor it shows what the site will or might look like, hence WYSIWYG (What You See is What You Get) or also known as WYSIWYMG (What You See is What You Might Get). It is an easy way to build content without the creator needing to know the raw code.
This is what the Visual Editor looks like when the 2 rows are visible.
Video Hat tip:T&S Webdesign