The equation δu = q - w represents the first law of thermodynamics, which states that the change in internal energy (δu) of a system is equal to the heat added to the system (q) minus the work done by the system (w). This fundamental relationship emphasizes the conservation of energy principle, illustrating how energy can neither be created nor destroyed, only transformed from one form to another. It connects heat transfer, work interaction, and internal energy, providing a framework for understanding energy exchanges in various processes.