It can show amplitude and period of a signal (a "waveform"). If you seen a demostration of cardiograms, this is the same thing, but for more broad and refined applications.
It works like a primative television. You have two drivers for its photon gun, which shoots a beam of light against a phosphorus matrix. In stop state, it appears as a dot, and this dot activates the phosphours, causing it to glow. The Y axis is controlled by amplitude of the input signal. A high amplitude will drive the dot upwards and an inverse amplitude will drive it downwards. The X axis is driven by time, which is user configurable. The beam scrolls left to right, then resets like the worlds fastest lawn sprinkler.
If you had connected to a signal that turned on and off every second, you would see two ranks of horizontal colinear alternating dashes spanning left to right.