Here is some data: 00 00 00 11 11 11 11 00 00 00, which is ten data values of two characters each, giving 20 characters in total. RLE looks for the runs of each data, and records what the data is and how many times in succession it occurs. These values are stored instead of the original data.
00000011111111000000 becomes:
60 81 60 (six 0s, eight 1s, six 6s)
In large files, this can result in significant space savings.