Bit Mode refers to a specific operational state in computing where data is processed in units of bits, the smallest unit of data in a computer. In this mode, operations can be performed on individual bits, allowing for efficient manipulation of binary data. This is particularly useful in low-level programming and hardware interactions. In Bit Mode, systems can execute tasks such as bitwise operations, which include AND, OR, and NOT functions. These operations are fundamental in tasks like data compression, encryption, and error detection, making Bit Mode essential for optimizing performance in various applications.