The y-axis on a sine wave graph represents the amplitude of the sine function, which corresponds to the y-coordinate of a point on the unit circle at a given angle. When evaluating sin(pi), the result is 0, indicating the sine value at that angle. The x-axis denotes the independent variable, typically in radians, while the y-axis reflects the function's output. It is noted that the visual representation of sine waves often exaggerates the y-axis scale for aesthetic purposes, which can affect interpretations of slope and derivatives. Understanding these aspects is crucial for accurate analysis of sine functions and their graphical representations.