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As you probably guessed, the Path bar shows the complete filesystem path to the current working directory in any Finder window. The optional window-dressing item has more use beyond that though, because not only does it show you the present directory,
it’s also interactive. You can double-click the individual folders to jump directly to them, and you can even drag and drop files and folders to them, making it extremely easy to copy or move files to the parent folders or elsewhere within a complicated directory structure.
Enabling the path bar from the OS X Finder is extremely easy:
All new Finder windows will now display the path by default. Being able to manipulate filesystem elements directly from the bar makes this a generally more functional alternative to showing the path in a Finder windows titlebar.
If you rarely find yourself working within the root directories, you can also set the path bar to he relative to the user home directory instead of the root hard drive