The equation $$w = \frac{nr}{\gamma - 1}(t_1 - t_2)$$ represents the work done by or on a gas during a thermodynamic process, where 'n' is the number of moles, 'r' is the gas constant, and 't_1' and 't_2' are the initial and final temperatures. This formula highlights the relationship between work, temperature changes, and the characteristics of the gas, making it crucial in understanding energy transfer within systems, especially when applying the First Law of Thermodynamics.