How is text stored in a computer?

In a computer, everything is stored in ones and zeros. A single one or zero is called a bit, and a group of 8 bits is called a byte. One byte can be represented as 8 binary numerals, like this: 10011101 Which equals the number 157. It can also be represented in hexadecimal, like this: 9D One byte can store any number between 0 and 255 (00 and FF in hex). In a computer, every text character has a specific number that represents that letter. So, when it sees a particular hex number, it translates that into the text and displays it.

This is an overly simplified description. To learn more, read up on bits, bytes, ascii codes and data storage protocols.