Pins configured as OUTPUT with pinMode() are said to be in a low-impedance state. This means that they can provide a substantial amount of current to other circuits. Atmega pins can source (provide positive current) or sink (provide negative current) up to 40 mA (milliamps) of current to other devices/circuits. This is enough current to brightly light up an LED (don't forget the series resistor), or run many sensors, for example, but not enough current to run most relays, solenoids, or motors.