In more detail
On Instagram, TikTok, and similar apps, captions and posts cannot contain clickable links, so the one URL in your bio is the main way to send people off-platform. Because you usually get just one slot, creators often point it at a landing page that holds several links at once: shop, newsletter, latest video, booking page. When you publish a post that says "link in bio," you are telling people to tap your profile and find that link, since you cannot drop the URL directly under the post.
Example
A bakery posts a photo of a new cake with the caption "Order yours, link in bio." The bio link opens a simple page with three buttons: order online, see the menu, and book a table. One link does the work of three.
FAQ