A compiler translates high-level code into machine-readable code, while an interpreter converts each line of high-level code into machine code as the program runs. The document provides examples of compiler and interpreter code and compares key differences between compilers and interpreters, such as compilers generating standalone executable files while interpreters execute code on a line-by-line basis without generating separate files. It also gives examples of languages typically using each approach, such as C/C++ commonly being compiled and Visual Basic/LISP commonly being interpreted.